Tariffs That Are Ad Valorem Are ________

question 9

Multiple Choice

Tariffs that are ad valorem are ________.

• A)based on the weight or size of the imported product
• B)assessed as a percentage of the imported product's value
• C)intended to provide a steady flow of income for the government
• D)charged regardless of the imported product's value

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Definitions:

Gold Standard

A monetary system in which the standard economic unit of account is based on a fixed quantity of gold.

Drawbacks

Drawbacks are disadvantages or negative aspects of a situation, plan, or product that may not make it as favorable as it seems.

Hamburger Standard

A method for comparing the purchasing power between different currencies by measuring the cost of a McDonald's Big Mac in various countries.

Overvalued Currency

A situation where a currency's value is higher than what is considered to be its fair market value, often due to government intervention.