Which of the following is an example of a specific or flat 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

A specific or flat tariff is a fixed amount of tariff duty per unit of a good. Option B - A $10 tariff on each barrel of petroleum is an example of a specific or flat tariff where a fixed amount of tariff duty is imposed on each barrel of petroleum. Option A is an example of an ad valorem tariff where a percentage of the value of the good is imposed as tariff duty. Option C is an example of a seasonal discount and not a tariff.

Which of the Following Is an Example of a Specific