The revenue collected by the government as a result of an imposed tariff is attributed to the:
A)production effect of a tariff
B)trade effect of a tariff
C)revenue effect of a tariff
D)consumption effect of a tariff

Question

Quizplus · Accepted Answer

The revenue collected by the government is a direct result of the tariff imposed and is attributed to the revenue effect of a tariff. This revenue can be used to fund government programs or reduce other taxes. The production effect refers to the change in domestic production, the trade effect refers to the change in imports and exports, and the consumption effect refers to the change in domestic consumption.

The Revenue Collected by the Government as a Result of an Imposed