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 affords less protection to home producers during eras of rising prices.

Question

Quizplus · Accepted Answer

A specific tariff is a fixed fee per unit of imported goods, so during periods of rising prices, the fixed fee represents a smaller percentage of the total cost, thus offering less protection to domestic producers compared to an ad valorem tariff.

Which of the Following Is True Concerning a Specific Tariff