Ad Valorem Tariffs Are

question 41

Multiple Choice

Ad valorem tariffs are:

• A)fixed taxes that are levied on the customers regardless of the value of the product or the service.
• B)taxes that are levied as a fixed charge, regardless of the value of the product or service.
• C)tariffs that are calculated as a percentage of the value of the product or service.
• D)taxes that are levied on the exporters depending on the value of the products or the service being provided.
• E)taxes that are levied on the producers of specific goods as decided by the ministry in charge of the finances of a country.

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Definitions:

Excess Capacity

A situation where a company can produce more goods or services than currently demanded, often leading to inefficiencies and lowered prices.

Monopolistically Competitive

Characterizes a market structure where many firms sell products that are similar but not identical, allowing for some degree of market power in setting prices.

Barriers To Entry

Factors that prevent or hinder the ability of a new competitor to enter an industry or market.