Question

If a car dealer in the United States imports a $50,000 BMW from Germany, the 2.5 percent tariff or $1,250 that the dealer must pay the U.S. government will be passed on to the customer. This is an example of a(n) _____ tariff.

Answer 1

Ad valorem tariff

Step-by-step explanation:

Ad valorem tax is defined as, any tax based on the money related estimation of the burdened thing. Truly the term signifies "as per esteem." Traditionally, most traditions and extracts had "explicit" rates; the assessment base was characterized regarding physical units, for example, gallons, pounds, or individual things.

For example taxes on goads and service,VAT on the final product and service.