A Lump-Sum Tariff Is

question 32

Multiple Choice

A lump-sum tariff is:

• A) a fixed fee that an importing firm must pay the domestic government in order to have the legal right to sell the product in the domestic market.
• B) the fee an importing firm must pay to the domestic government on each unit it brings into the domestic market.
• C) a restriction limiting the quantity of imported goods that can legally enter a domestic market.
• D) None of the statements are correct.

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Definitions:

Governmental Authority

Denotes the legal and formal right of a government to enact laws, enforce rules, and regulate behaviors within its jurisdiction.

Traditional Authority

refers to a form of leadership in which the power of rulers is rooted in customs, traditions, and societal norms, often passed down through generations within families or clans.

Bureaucracy

An organizational structure characterized by standardized procedure, hierarchy of authority, and a clear division of labor, often within governmental agencies.

Capitalism

A financial system in which commerce, business, and resources are primarily or wholly owned and managed by private individuals for monetary gain.