During the first 6 months of 2008,the United States imported 1,655,740,870 pounds of coffee. Suppose the United States is considering placing trade restrictions on the importation of coffee. If the United States has a goal of raising tax revenue from coffee imports,what policy should they pursue?

Question

Quizplus · Accepted Answer

Placing tariffs on imported coffee would increase the tax revenue collected by the United States on coffee imports. This would create a disincentive for foreign producers to export their coffee to the United States, while at the same time generating revenue for the government. Subsidies and voluntary export restraints would both result in a decrease in tax revenue for the government, while quotas would limit the total amount of coffee that could be imported, but would not necessarily result in increased tax revenue.

During the First 6 Months of 2008,the United States Imported