Question

Suppose that Spain has a workforce of 22.85 million people, and that the average salary for each person is €24,200 annually. Spain has imports of €290.85 billion and exports of €200.13 billion. If the Spanish government levies a 7% tariff on exports, an 18% tariff on imports, and a 21% income tax, how will the revenue gained from tariffs and the revenue gained from income tax compare?

Answer 1

The answer is D: The government will earn €49.7616 billion more from income tax than from tariffs.

Explanation:

Answer 2

D. The government will earn €49.7616 billion more from income tax than from tariffs.

Step-by-step explanation: According to E2020