Which of the following is a fixed percentage of the value of an imported product?
A) specific tariff
B) ad valorem tariff
C) nominal tariff
D) effective protection tariff
E) infant industry tariff

Question

Quizplus · Accepted Answer

Ad valorem tariff is a fixed percentage of the value of an imported product. Specific tariff is a fixed amount per unit of an imported product. Nominal tariff is the official rate set by a government, but it may not reflect the actual amount paid by importers. Effective protection tariff is the combination of the nominal tariff and the extent to which domestic producers are protected from foreign competition. Infant industry tariff is a temporary measure to protect a new domestic industry from foreign competition.

Which of the Following Is a Fixed Percentage of the Value