Refer to the Information Provided in Figure 18

question 244

Multiple Choice

Refer to the information provided in Figure 18.4 below to answer the questions that follow. Figure 18.4
-Refer to Figure 18.4. The domestic price of a leather wallet is $20. With free trade the price of a leather wallet is $10 and after a tariff is imposed the price is $15. After the tariff is imposed, this country will import ________ leather wallets.

• A) 50
• B) 100
• C) 150
• D) 200

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Definitions:

Present Value

The value of a future amount of money in today's terms, discounted at a particular rate.

Cost Of Capital

The rate of return a company must earn on its investments to maintain its market value and attract funds.

Lump Sum

A one-time payment made for a particular purpose, rather than recurring payments over time.