What Is the Term for a Tax on Imports That

question 21

Multiple Choice

What is the term for a tax on imports that is equal to a percentage of the cost of those imports?  

• A) a specific tariff 
• B) an ad valorem tariff 
• C) a tax on luxury goods only 
• D) an effective tariff

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Definitions:

Accounting Equation

The fundamental formula representing the relationship between a company's assets, liabilities, and owners' equity (Assets = Liabilities + Equity).

Total Assets

The total value of everything a company owns, including both current and non-current assets, used in its operations to generate revenue.

Accounting Equation

The foundational equation in accounting that represents the relationship between assets, liabilities, and owners' equity, expressed as Assets = Liabilities + Owners' Equity.

Electric Bill

A monthly charge for the consumption of electricity, typically issued by an electricity provider.