Which Type of Policy Raises the Most Revenue for the Government

question 27

Multiple Choice

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 raises revenue for the government.

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Definitions:

Balance Sheet

A financial statement that showcases the assets, liabilities, and shareholders' equity of a company at a specific point in time.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, resulting in a net profit or loss.

Expected Residual Value

The anticipated value of an asset at the end of its useful life, important in calculating depreciation and lease payments.

Lease Rate

The amount of money paid over a specified time period for the use of an asset or property, typically expressed as an annual amount or percentage.