Which of the following is true concerning a specific tariff?
A) It is exclusively used by the U.S. in its tariff schedules.
B) It refers to a flat percentage duty applied to a good's market value.
C) It is plagued by problems associated with assessing import product values.
D) It gives less protection to home producers during eras of rising prices.

Question

Quizplus · Accepted Answer

A specific tariff is a fixed fee based on the physical units of the imported product (e.g., $1 per kilogram), not on the product's value. This means that during periods of rising prices, the relative protection afforded by a specific tariff decreases because the tariff amount does not increase with the price of the good, unlike ad valorem tariffs which are based on a percentage of the good's value.

Which of the Following Is True Concerning a Specific Tariff