Figure 17-13
-In Figure 17-13, if the world price of a baseball is $3 and a tariff of $1 per baseball is imposed in the United States, how much tariff revenue will the United States government collect?
A) $4,000
B) $16,000
C) $20,000
D) $24,000
E) $48,000

Question

Figure 17-13 
-In Figure 17-13, if the world price of a baseball is $3 and a tariff of $1 per baseball is imposed in the United States, how much tariff revenue will the United States government collect?
A) $4,000 
B) $16,000 
C) $20,000 
D) $24,000 
E) $48,000

Quizplus · Accepted Answer

The tariff revenue is equal to the tariff per unit multiplied by the number of units imported. In this case, the tariff is $1 per baseball and the number of units imported is 4,000 (as shown in the graph). Therefore, the tariff revenue is $1 * 4,000 = $4,000.

Figure 17-13 -In Figure 17-13, If the World Price of a Baseball