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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?
a. The government will earn €80.7214 billion more from tariffs than from income tax.
b. The government will earn €29.5030 billion more from tariffs than from income tax.
c. The government will earn €63.7707 billion more from income tax than from tariffs.
d. The government will earn €49.7616 billion more from income tax than from tariffs.
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