Refer to the Above Table for a Certain Product's Market

question 96

Multiple Choice

Refer to the above table for a certain product's market in Econland. If the world price of the product were $6 and a tariff of $1 per unit were applied to imports of the product, then the tariff would generate government revenues of:

• A) $600
• B) $400
• C) $800
• D) $1,200

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Definitions:

Future Dividends

Predicted payments made by a corporation to its shareholders out of its earnings in the future.

Stock Split

An action by a company to divide its existing shares into multiple shares to boost the liquidity of the shares, although the firm's overall market capitalization remains unchanged.

Common Stockholders' Equity

The portion of a company's equity that is held by common shareholders, representing ownership interest.

Balance Sheet

A financial statement that displays a company's assets, liabilities, and shareholders' equity at a specific point in time.