What is the difference between a specific tariff and an ad valorem tariff?
A) A specific tariff is a set amount of money per unit of a product, while an ad valorem tariff is a set percentage of product price.
B) A specific tariff is a set percentage of product price, while an ad valorem tariff is a set amount of money per unit of a product.
C) A specific tariff names a particular good to which the tariff applies, while an ad valorem tariff applies to large classes of products.
D) A specific tariff applies only to imports, while an ad valorem tariff applies only to exports.
Correct Answer:
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A) a tax
