Product "A" has an import value of $100. If a tariff of 10 percent of the product's value plus $10 per unit were imposed on "A", the result would be a(n) ____ of _____ .
A) ad valorem; $15
B) combined; $15
C) compound; $15
D) revenue; $17
E) compound; $20

Question

Quizplus · Accepted Answer

The correct answer is a compound tariff because it combines a percentage of the product's value (10 percent of $100 = $10) with a specific amount per unit ($10), totaling $20.

Product "A" Has an Import Value of $100