Which of the following statements is true?
A) an ad valorem tariff is a fixed sum per unit
B) the U.S. does not allow exports tariffs
C) in the case of a small country the cost of a tariff is split between the buyer and seller
D) a specific tariff is a % of the value of the unit

Question

Quizplus · Accepted Answer

The United States does not impose tariffs on exports, but it may impose tariffs on imports. A) is incorrect because an ad valorem tariff is a percentage of the value of the imported product. C) is incorrect because in the case of a small country, the entire burden of a tariff falls on the consumers, not split between the buyer and seller. D) is incorrect because a specific tariff is a fixed amount per unit, not a percentage of the value of the imported product.

Which of the Following Statements Is True