Revenue

Definition

Revenue refers to the income generated by a government or organization through various sources like taxes, tariffs, trade, or state-controlled industries. It helps fund public services and supports the functioning of governments.

Analogy

Imagine revenue as money flowing into your bank account from different sources like allowance, part-time job salary, or selling homemade crafts. The more revenue you have, the more you can spend on things you need.

Related terms

Taxation: Taxation is one way governments collect revenue from individuals and businesses based on their income, property value, or consumption.

Tariffs: Tariffs are taxes imposed on imported goods as they enter a country. They aim to protect domestic industries and generate revenue for the government.

Trade: Trade involves buying and selling goods between countries or regions. It contributes significantly to revenue generation for nations involved in international commerce.