Asked by
Karina Velazquezamaya
on Nov 05, 2024
Verified
Refer to Figure 20.4. 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, ________ revenue in this country will be $500.
A) export
B) import
C) tariff
D) total
Tariff Revenue
Income earned by a government through the imposition of tariffs or taxes on imported goods.
Domestic Price
The price at which goods or services are sold within a country's own market, excluding any tariffs, duties, or international shipping costs.
Free Trade
The free trade of goods and services across nations without the application of restrictions like tariffs, duties, and quotas.
- Comprehend the concept of tariff revenue and how it is affected by changes in tariff rates.
Verified Answer
DC
Learning Objectives
- Comprehend the concept of tariff revenue and how it is affected by changes in tariff rates.