passwella.
Menu

JAMB Economics 2012 Question 34

Question 34

Public Finance

An ad valorem tax is imposed on

  1. A.special commodities
  2. B.exports
  3. C.imports
  4. D.the value of a commodity.
Show the answer and explanation

Answer: D (the value of a commodity.)

Explanation

Ad valorem means 'according to value': the tax is a percentage of the commodity's value.