US Tariffs, Measured as a Percentage of the Import Price

question 138

Multiple Choice

U.S. tariffs, measured as a percentage of the import price,

• A)were very low prior to the Great Depression.
• B)have remained constant since the Great Depression.
• C)have declined steadily since the Great Depression.
• D)were never used prior to the Great Depression.
• E)have only been used since the start of the twentieth century.

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Definitions:

Federal Income Tax

A tax levied by the federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Double-declining Balance

A method of accelerated depreciation where the asset’s book value is decreased at double the rate of traditional straight-line depreciation.

Straight-line Depreciation Rate

The straight-line depreciation rate is a method of calculating the depreciation of an asset, where its cost is evenly spread over its useful life, resulting in a fixed annual depreciation expense.

Salvage Value

The estimated value that an asset will realize upon its sale at the end of its useful life.