Suppose that Mexico levies a tariff on steel that is collected as a fixed amount of money per ton imported.This refers to
A) a compound tariff.
B) an ad valorem tariff.
C) a specific tariff.
D) an effective tariff.

Question

Quizplus · Accepted Answer

The scenario described does not involve a percentage of the value of the imported steel, ruling out choice B. It also does not involve a combination of a fixed amount and a percentage of the value, ruling out choice A. The tariff is specifically collected as a fixed amount per ton imported, indicating a specific tariff. Therefore, choice C is the correct answer. Choice D, effective tariff, refers to the actual amount of taxes paid as a percentage of the price of the imported goods, and is not applicable based on the information provided.

Suppose That Mexico Levies a Tariff on Steel That Is