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Suppose a Chinese Clothing Manufacturer Wants to Sell a Shirt

Question 179

Multiple Choice

Suppose a Chinese clothing manufacturer wants to sell a shirt to a U.S. customer, but the U.S. government adds a $0.50 tax on the price of the shirt at the U.S. border. This is an example of


A) a quota.
B) an ad valorem tariff.
C) dumping.
D) a unit tax tariff.

Correct Answer:

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