22
QuizMultiple Choice

World Economics

Question 22 • T1 - 4 RMA-TX-Financial Math-B

Say that Romania puts a tariff of 6% on its exports and 21% on its imports. If Romania has a trade deficit of (equivalent US dollars) $26.76 billion and gained tariff revenue of $18.9603 billion, how much are Romania’s imports worth?

Answer
A
$62.56 billion
B
$64.29 billion
C
$76.17 billion
D
$97.04 billion

Explanation

Let imports be I and exports be E. The trade deficit means I − E = $26.76 billion, so E = I − $26.76 billion. Tariff revenue is 6% of exports plus 21% of imports: 0.06(I − 26.76) + 0.21I = 18.9603. Solving gives 0.27I = 20.5659, so imports are worth $76.17 billion, choice C.

AI-written and checked against the verified answer.

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