When product tax is imposed as a percentage of price it is referred as?
Ad valorem means a percentage of transaction value/price. A specific or unit tax is a fixed amount per physical unit; profit tax targets profits.
Choose your answer
When product tax is imposed as a percentage of price it is referred as?
Answer and explanation
Correct answer B
Ad valorem means a percentage of transaction value/price. A specific or unit tax is a fixed amount per physical unit; profit tax targets profits.
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UGC NET Economics