The Figure Given Below Depicts the Negatively Sloped Demand and Positively

question 25

Multiple Choice

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

-According to Figure 21.2, if the world price of wheat is $25, and a tariff of $25 is imposed by the domestic government, the total tariff revenue collected by the government is:

• A)$2,000.
• B)$0.
• C)$200.
• D)$100.
• E)$4,000

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Definitions:

Emission Exhaust

The release of gases or other pollutants into the air from internal combustion engines or other sources.

Infant Industry

A new or emerging industry that may require protection and support to grow against international competition.

Trade Protection

Economic policies and measures designed to restrict international trade to protect domestic industries from foreign competition.

Foreign Competition

Economic rivalry that businesses face from producers located in other countries.