Use the Following to Answer Questions

question 91

Multiple Choice

Use the following to answer questions:
Figure: Trade 2
-(Figure: Trade 2) Refer to the figure. In this figure representing the market for oil, what are the total revenues generated by the tariff?

• A) $25,000
• B) $20,000
• C) $10,000
• D) $5,000

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or investment.

Economic Profits

Profits exceeding the opportunity costs of all resources employed, reflecting a return beyond the normal profit level.

Economic Costs

The total value of all the resources used in the production of goods or services, including both explicit and implicit costs.

Economic Profit

The difference between total monetary revenue and the total costs of inputs (including opportunity costs), representing the financial gain exceeding the economic opportunity lost.