A Tax of 20 Cents Per Unit of Imported Cheese

question 62

Multiple Choice

A tax of 20 cents per unit of imported cheese would be an example of:

• A) Compound tariff
• B) Effective tariff
• C) Ad valorem tariff
• D) Specific tariff

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Definitions:

Cost of Goods SOLD

Expenses directly associated with the creation of goods a company sells, including costs for materials and labor.

Operating Expenses

Recurring expenses related to the central operations of a business, such as rent, utilities, and payroll, excluding costs of goods sold.

Earnings Per Share

A measure of a company's profitability, calculated as the net income divided by the number of outstanding shares of common stock.

Common Stockholders

Individuals or entities that own shares of common stock in a corporation, giving them rights to dividends and voting in shareholder meetings.