A tax of 15 percent per imported item would be an example of a (an) ?
Correct answer: A. Ad valorem tariff
- A. Ad valorem tariff
- B. Specific tariff
- C. Effective tariff
- D. Compound tariff
Explanation
An ad valorem tariff is charged as a percentage of the imported item's value, such as 15 percent. A specific tariff is a fixed amount per unit, while a compound tariff combines both methods.
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