Refer to the Information Provided in Figure 4

question 108

Multiple Choice

Refer to the information provided in Figure 4.1 below to answer the question(s) that follow. Figure 4.1
-Refer to Figure 4.1. If the United States levies no taxes on apples, the price of apples in the United States would fall to ________, and the United States would import ________.

• A) 20 cents per apple; 10 million apples per day
• B) 30 cents per apple; 6 million apples per day
• C) 40 cents per apple; 2 million apples per day
• D) The price of apples in the United States after the U.S. government eliminated all taxes on imported apples cannot be determined from this information.

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed, which can vary depending on income level, type of income, or jurisdiction.

Net Income

A company’s final income after deducting all expenses and taxes from its gross revenue.

Domestic Corporations

Corporations that are incorporated and operate within the legal boundaries of a particular country, subject to that country's laws and regulations.

Deferred Income Tax Liability

A tax obligation due in the future for income already earned and recognized for accounting purposes.