What revenue does the government acquire when a tariff is imposed?
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Answer: B. $100,000
Explanation
Government revenue from a tariff is calculated by multiplying the tariff rate by the volume of imports, yielding $100,000. Taxing foreign goods entering the country generates direct fiscal income for the national treasury. Multiplying the specific import tax per unit by the total imported quantity gives the exact tariff revenue total. A tariff is a tax imposed by a government on imported goods and services from other countries. International trade taxation raises the domestic price of imports and protects competing domestic industries. Public finance calculations use trade volume data to estimate customs and excise revenue inflows.
Governments utilize tariff revenues to fund public infrastructure projects and government operational budgets. Imposing tariffs can create trade disputes between nations while shifting surplus wealth to domestic producers. Evaluating tariff revenue helps fiscal analysts assess the trade-offs of protectionist economic policies. Option A underestimates the total calculated revenue derived from the specified tariff rate and import volume. Option C overestimates the tariff revenue by using an incorrect multiplication product of the data. Option D represents an inflated revenue figure that exceeds the mathematically correct calculation result.
Related questions
Q1. Under free trade conditions, what would the total volume of imports equal ?
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Answer: B. 40,000 units
Free trade equilibrium calculations from standard trade diagrams determine import volume by finding the horizontal difference between domestic demand and supply at world price. Subtracting domestic production quantity fr...
Q2. Assuming free trade allows the global market to supply computers to Norway at $1,500, Norway’s imports will equal. Relative to autarky conditions, Norwegian consumer surplus will _____ while producer surplus will ____. Can these values be computed? Try plotting this tabular data on graph paper ?
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Answer: B. 1,600 computers, increase, decrease
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Q3. Under free trade, what would the total worth of imports equal ?
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Answer: B. $400,000 units
Under free trade conditions, the equilibrium volume of imports corresponds to $400,000 units based on standard trade model parameters. Multiplying the established import volume by the constant world price yields the tota...
Q4. Inside the circular flow of income, an elevation in domestic income will generally stimulate an increase in ?
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Answer: B. taxes
As domestic income rises, tax revenues collected by the government automatically increase due to higher taxable economic activity. Higher personal earnings and corporate profits push individuals and businesses into highe...
Q5. Through international trade, what would be the peak quantity of DVDs Japan is willing to send to South Korea for each ton of steel ?
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Answer: A. One DVD
Japan's willingness to export DVDs is constrained by its opportunity cost, resulting in a peak quantity of one DVD per ton of steel. Japan will not accept fewer DVDs for its steel exports than it can produce domestically...
Q6. What term defines the phase of competition where rival firms attempt to undercut each other's retail prices ?
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Answer: C. Price war
A price war occurs when competing firms aggressively lower their prices in an attempt to capture market share from each other. Rival businesses engage in retaliatory price cuts, driving market prices down toward marginal...