SCENARIO: FINNISH STEEL
Suppose that the freetrade price of a ton of steel is €500.(Note: € is the
Symbol for the euro, a common currency used in 16 European countries,
Including Finland.) Finland, a small country, imposes a €60 perton
Specific tariff on imported steel.With the tariff, Finland produces 300,000
Tons of steel and consumes 600,000 tons of steel.
Reference: Ref 85
(Scenario: Finnish Steel) What is the value of the tariff revenue from the
€60perton tariff?
A)€6 million
B)€12 million
C)€18 million
D)€30 million

Question

SCENARIO: FINNISH STEEL
Suppose that the free­trade price of a ton of steel is €500.(Note: € is the
Symbol for the euro, a common currency used in 16 European countries,
Including Finland.) Finland, a small country, imposes a €60 per­ton
Specific tariff on imported steel.With the tariff, Finland produces 300,000
Tons of steel and consumes 600,000 tons of steel.
Reference: Ref 8­5
(Scenario: Finnish Steel) What is the value of the tariff revenue from the
€60­per­ton tariff?
A)€6 million
B)€12 million
C)€18 million
D)€30 million

Quizplus · Accepted Answer

The tariff revenue is equal to the tariff rate multiplied by the quantity of imports. In this case, the tariff rate is €60 per ton and the quantity of imports is 600,000 tons. Therefore, the tariff revenue is €60 * 600,000 = €36,000,000.

SCENARIO: FINNISH STEEL Suppose That the Free­trade Price of a Ton of Steel

SCENARIO: FINNISH STEEL Suppose That the Freetrade Price of a Ton of Steel