Until January 1,2012,the price for ethanol consumers in the United States was higher than world free-market price by $0.54 per gallon because of the $0.54 per gallon tariff imposed by the U.S.government on ethanol imports.This is an example of a(n)_____ tariff.

Question

Quizplus · Accepted Answer

A specific tariff is a fixed amount of tax levied on each unit of a good imported, like the $0.54 per gallon tariff imposed by the U.S. government on ethanol imports. This is different from an ad valorem tariff, which is a percentage of the imported good's value, and a preferential tariff, which is a reduced or waived tariff rate given to imports from certain countries as part of a trade agreement. A generalized tariff refers to a tariff that applies to all imported goods, regardless of their origin or type. A custom tariff is not a type of tariff, but rather a general term for any tax or duty imposed on goods entering or leaving a country.

Until January 1,2012,the Price for Ethanol Consumers in the United