An Ad Valorem Tax

question 143

Multiple Choice

An ad valorem tax:

• A) taxes an import a certain percentage of its price as it crosses the border.
• B) taxes an export a certain percentage of its real value as it crosses the border.
• C) taxes an import differently based upon its contribution to national defense.
• D) is not much different from a quota.

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Definitions:

Exchange Floor

The physical location where traders buy and sell securities or commodities within a financial exchange.

Orderly Market

A market condition in which prices move in a smooth and predictable manner, without excessive volatility or gaps in trading prices.

Over-the-Counter Market

A decentralized market where participants trade stocks, bonds, currencies, and other financial instruments directly between two parties without a central exchange or broker.

New York Stock Exchange

A major global securities exchange located in New York City, where stocks are bought and sold.