A Tax of 20 Percent Per Unit of Imported Garlic

question 27

Multiple Choice

A tax of 20 percent per unit of imported garlic is an example of a(n)

• A)specific tariff.
• B)ad valorem tariff.
• C)nominal tariff.
• D)a disadvantageous tariff
• E)effective protection tariff.

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Definitions:

Liability

Financial obligations or debts owed by a company or individual to others, which must be settled over time.

Asset

An Asset is any resource owned or controlled by a business or an individual that is expected to produce future economic value.

Revenue

The total income generated by a company from its business activities, such as sales of goods and services, before any expenses are deducted.

Cash Coverage Ratio

A measure of a company's ability to pay its debt obligations using its operating cash flow.