A Restriction Placed on the Amount of a Product Allowed

question 30

Multiple Choice

A restriction placed on the amount of a product allowed to enter or leave a country is referred to as a

• A)quota.
• B)tariff.
• C)GATT tax.
• D)subsidy.
• E)excise tax.

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Definitions:

Straight-Line Depreciation

A way to distribute the outlay of a tangible resource over its service life in regular annual contributions.

Tax Rate

The percentage at which an individual or corporation is taxed on their income or profits.

After-Tax Net Income

The amount of profit left after all taxes have been deducted from total revenue.

Payback Period

The length of time it takes for an investment to recover its initial cost, used in capital budgeting to assess investment viability.