Revenue Tariffs Are Still Common in Less-Developed Countries Because

question 229

Multiple Choice

Revenue tariffs are still common in less-developed countries because

• A)their governments are unable to collect other forms of taxes from their citizens.
• B)their governments can easily collect them as goods come through a port or one of a few checkpoints.
• C)their governments want foreign exporters to subsidize them.
• D)they raise more money at one time than any other form of taxation would.
• E)they raise money from foreigners rather than from taxing their own citizens.

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Definitions:

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay.

International Trade

The exchange of goods, services, and capital among various countries and territories, crossing their international borders.

Absolute Advantage

The ability of a country, individual, or group to produce a good or service more efficiently than competitors, using fewer resources.

Microchips

Small semiconductor devices that contain electrical circuits capable of processing data or controlling devices and processes.