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WAEC Economics 2001 Question 44

Question 44

Public Finance

An ad valorem tax refers to a tax

  1. A.imposed on exports
  2. B.on goods manufactured in the country
  3. C.based on the value of the commodity
  4. D.levied on income.
Show the answer and explanation

Answer: C (based on the value of the commodity)

Explanation

An ad valorem tax is a percentage of the value (price) of a commodity.