An Ad Valorem Tax

question 38

Multiple Choice

An ad valorem tax

• A) taxes an import a certain percentage of its price as it crosses borders.
• B) taxes an export a certain percentage of its real value as it crosses borders.
• C) taxes an import differently based upon its contribution to national defense.
• D) is not much different from a quota.

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Definitions:

Expensive

Costing a lot of money; high priced.

Automation

The use of technology and machinery to perform tasks without significant human intervention, aimed at increasing efficiency, accuracy, and productivity.

Computer-controlled Machines

Machines and systems operated or controlled by computer-based algorithms, often used in manufacturing and production processes.

Manually Performed Tasks

Activities or operations that are executed by hand or physical effort without the aid of automated machinery or technology.