Ty'Jeanea works in the snack shop at the school gym.Profits from the snack shop are used to support the school teams.Because the snack shop is profitable and the teams have succeeded due to increased ability to purchase training equipment,the cheerleaders and other school clubs would like to sell items through the snack shop as well.Ty'Jeanea talks to members of the snack shop management team about the possibility of other school clubs selling items through the shop and what it may mean to the shop's profitability.After a lengthy discussion,they agree that other clubs can sell items through the shop,but cannot sell food items;in addition,every club will have to pay the snack shop 20% of its profits.Many of the organizations are discouraged from selling items through the snack shop due to the high cost of doing business there.Ty'Jeanea is sitting in her business class later and the instructor explains trade restrictions placed on imports to limit particular foreign products from entering a country.As she thinks about the lesson,she realizes that if you compared the snack shop to the government,they had not acted to keep other items from being sold through the shop,but merely to raise revenue.Which of the following best describes the kind of trade restriction that Ty'Jeanea is comparing the shop's actions to?

Question

Quizplus · Accepted Answer

The snack shop's decision to charge other school clubs 20% of their profits can be compared to a revenue tariff, which is a tax placed on imported goods with the purpose of raising revenue for the government. The snack shop is not protecting a specific industry or product (protective tariff) nor is it using other methods to restrict trade (nontariff barriers or embargo).

Ty'Jeanea Works in the Snack Shop at the School Gym