The Figure Given Below Depicts the Negatively Sloped Demand and Positively

question 54

Multiple Choice

The figure given below depicts the negatively sloped demand and positively sloped supply curves of wheat in a country.Figure 21.2

-In Figure 21.2, if the world price of wheat is $35 and a $15 tariff is imposed:

• A)domestic consumption will decrease from 400 to 350 bushels of wheat.
• B)the government will collect $200 in revenue from the tariff.
• C)domestic consumption will increase from 150 to 200 bushels of wheat.
• D)there will be no trade, and the domestic equilibrium quantity will prevail.
• E)domestic price for wheat will be higher than its world price.

---

Definitions:

Unearned Revenue

Money received by a company for goods or services yet to be delivered or performed, recognized as a liability on the balance sheet.

Trial Balance

A statement that lists all the balances of the ledger accounts, used to verify that the total of debit balances equals the total of credit balances.

General Journal

An accounting book where all transactions are initially recorded, based on the double-entry bookkeeping system, before being transferred to specific accounts.

Accounts Receivable

Company receivables from goods or services provided to customers that remain unpaid.