Which of the Following Best Defines a Tariff

question 70

Multiple Choice

Which of the following best defines a tariff?

• A) It is a specific limit on the volume of imported goods.
• B) It is a direct tax on imported goods.
• C) It is a complete ban on trade of a certain item.
• D) It is a limit on the number of products exported to a particular country.

---

Definitions:

Internal Rate

Often referring to the internal rate of return (IRR), it is the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Capital Investment

Funds spent by a company to acquire or upgrade physical assets to further its long-term goals and operations.

Present Value

The value of a future amount of money in today's dollars, calculated by applying a discount rate to account for the time value of money.

Net Present Value

The difference between the present value of cash inflows and outflows over a period of time, used in capital budgeting to assess the profitability of investments.