Which of the following is a fixed percentage of the value of an imported product as it enters the country?
A) Specific tariff
B) Ad valorem tariff
C) Nominal tariff
D) Effective tariff

Question

Quizplus · Accepted Answer

An ad valorem tariff is a fixed percentage of the value of an imported product as it enters the country. The other options are not accurate descriptions of this type of tariff:

A) Specific tariff is a fixed amount charged per unit of the imported product 
C) Nominal tariff refers to the official rate set by a government, but it may not reflect the actual percentage or amount paid by importers
D) Effective tariff is the actual percentage or amount paid by importers after taking into account any exemptions or discounts.

Which of the Following Is a Fixed Percentage of the Value