A(n)_____ is a tax on imports that is stipulated as a money amount per unit.
A)specific tariff
B)ad valorem tariff
C)effective tariff
D)optimal tariff

Question

Quizplus · Accepted Answer

A specific tariff is a tax on imports that is stated as a fixed amount per unit, regardless of its value. It is different from an ad valorem tariff, which is a tax on imports that is stated as a percentage of the value of the goods. An effective tariff is the total impact of both specific and ad valorem tariffs on the price of imported goods. An optimal tariff is the theoretical tariff that maximizes the benefits for the importing country while minimizing the costs.

A(n)_____ Is a Tax on Imports That Is Stipulated as a Money