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?

a $62.56 billion
b. $64.29 billion
c. $76.17 billion
d. $97.04 billion

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shubhamchouhanvrVT shubhamchouhanvrVT · Answer 1 · 2022-04-23T13:33:40+02:00

Romania's imports Worth will be equal to $76.17 billion after calculation.

The relations between imports, exports, and tariffs can be described by ...

[tex]0.06E +0.21I = $18.9603 .[/tex] . . . . . total tariff revenue

[tex]I -E = 26.76[/tex]. . . . . . . . . . . . . . . . trade deficit

Solving the second equation for E gives ...

[tex]E = I -26.76[/tex]

Substituting into the first equation yields ...

[tex]0.06(I -26.76) +0.21I = 18.9603[/tex]

[tex]0.27I = 18.9603 +1.6056 = 20.5659[/tex]. . . . add 1.6056 to both sides

[tex]I = 10.5659/0.27 = 76.17[/tex]

Hence Romania's imports are worth about $76.17 billion.

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