Why do the governments of some developing countries use tariffs to raise revenue?
What will be an ideal response?
Governments in some developing countries use tariffs to raise revenue, since they do not have well-functioning tax systems and can more easily tax imports that flow through a few urban ports than they can tax domestic economic activity that is widely geographically dispersed.
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If consumers believe the price of LCD televisions will decrease in the future, this will cause the demand for LCD televisions to increase now
Indicate whether the statement is true or false
Suppose you withdraw $500 from your checking account deposit and bury it in a jar in your back yard. If the required reserve ratio is 10 percent, checking account deposits in the banking system as a whole could drop up to a maximum of
A) $0. B) $50. C) $500. D) $5,000.
The major economic problem is to:
a. provide for full employment. b. eliminate scarcity. c. increase the standard of living. d. allocate limited resources among unlimited uses. e. increase leisure.
A bank's required reserves are the fraction of deposits they are required by law to hold as reserves.
Answer the following statement true (T) or false (F)