Which of the following is an example of an ad valorem tariff?
A) A 15% tariff on the value of a shipment of t-shirts
B) A $10 tariff on each barrel of petroleum
C) A 20% discount on the value of peaches delivered in October, November, or December
D) None of these are correct

Question

Quizplus · Accepted Answer

An ad valorem tariff is a tariff that is based on a percentage of the value of the imported goods. In this example, the 15% tariff is based on the value of the shipment of t-shirts.

B) is an example of a specific tariff, which is a tariff that is based on a fixed amount per unit of the imported goods.

C) is not an example of a tariff, but rather a discount or incentive for purchasing peaches during certain months.

D) is not a valid choice.

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