A small nation places a tariff of $1000.00 on automobiles.If 40 autos are imported, the government collects $40,000 in duties.This is a calculation of the
A) redistributive effect.
B) protective effect.
C) revenue effect.
D) consumption effect.

Question

Quizplus · Accepted Answer

The calculation of $40,000 in duties collected by the government shows the revenue effect of the tariff, indicating that the government is using the tariff as a means of generating revenue.

A Small Nation Places a Tariff of $1000