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AD VALOREM TARIFF: A tax on imports that is specified as a percentage of the value of the good or service being taxed. This is one form of trade barrier that's intended to restrict imports into a country. Unlike nontariff barriers and quotas, which increase prices and thus revenue received by domestic producers, an 'ad valorem tariff' generates revenue for the government. For example: a 15 percent ad valorem tariff on a TV set worth $100 would pay a tariff of $15. One advantage of an ad valorem tariff is that it keeps up with changes in prices (mostly inflation).
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WHAT? The allocation question that determines the types and quantities of goods and services produced with society's limited resources. What goods and services are produced with society's limited resources? This is one of three basic questions of allocation. The other two are How? and For Whom?
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Creating WEALTHWealth -- what is it and how do you get it? Perhaps one of those home business franchises that sell cleaning products, housewares, or perfume can be your source of financial independence. And, as evidenced by those late-night infomercials, the always lucrative area of real estate investment is almost certain to turn you into a gadzillionaire by next Thursday. Or perhaps tinkering in the financial markets with penny stocks, gold futures, or silver options is more your cup of tea. (My personal favorite is the Darling Donna's Chimney Sweep outfit that gives you the opportunity for a meaningful career in the high-profile field of chimney maintenance products.) The question for today is: Are any of these get-rich-quick schemes better than buying a lottery ticket?
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The average bank teller loses about $250 every year.
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"Divide each difficulty into as many parts as is feasible and necessary to resolve it." -- Rene Descartes
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IIA
Irrelevance of Independent Alternatives
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