What type of measure is a 15 percent levy on each imported good ?
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Answer: A. Ad valorem tariff
Explanation
An ad valorem tariff is levied as a fixed percentage of the monetary value of each imported good. The customs duty amount scales automatically with the financial price of the imported commodity. Expensive imports generate higher total tax revenue per unit compared to cheaper imported goods under this system. Ad valorem translates from Latin to mean according to value, forming the basis of percentage-based taxation. Governments collect ad valorem tariffs at national borders through customs valuation of commercial cargo manifests. Inflation naturally increases ad valorem tariff revenue because duty collections rise alongside inflating product prices.
A specific tariff charges a fixed dollar amount per physical unit of import regardless of its monetary value. An effective tariff rate measures the protective impact on domestic value added including duties on imported inputs. A compound tariff combines both specific and ad valorem duties into a single combined import tax.
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Answer: C. can sometimes
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Q2. When does a supply shift impact price more significantly than quantity ?
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Answer: A. The price elasticity of supply is – 3
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Q3. What defines a tariff-rate quota ?
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Answer: D. is a two-tier tariff system intended to restrict imports?
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Q4. How is a public good defined ?
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Answer: A. neither rival nor excludable
A public good is defined economically as being both non-rivalrous and non-excludable in consumption. Non-rivalry means one person's use of the good does not reduce the availability for anyone else. Non-excludable means p...
Q5. What measures might be part of an expansionary fiscal policy ?
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Answer: B. Increased lending by the banks
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Q6. A student decides to study because the marginal gain exceeds the ______________ cost?
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Answer: D. marginal
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