Which type of policy raises the most revenue for the government?
A) tariff
B) quota
C) voluntary export restraints
D) If they are set at the same level, all of the above raise the same amount of revenue.
E) None of the above answers is correct because none of the policies raise revenue for the government.

Question

Quizplus · Accepted Answer

Tariffs are taxes on imported goods, and they generate revenue for the government. Therefore, tariffs are the type of policy that raises the most revenue for the government. Quotas and voluntary export restraints do not generate revenue for the government.

Which Type of Policy Raises the Most Revenue for the Government