Which of the following statements is true of tariffs?
A) Tariffs increase an imported product's appeal to buyers.
B) Transit tariffs are the most widely-levied tariffs.
C) Ad valorem tariffs are levied as a specific fee for each unit of an imported product.
D) Export tariffs are used by countries when they believe an export's price is lower than it should be.

Question

Quizplus · Accepted Answer

Export tariffs are used by countries when they believe an export's price is lower than it should be. The other options are incorrect: A) tariffs increase the price of an imported product, making it less appealing to buyers, B) transit tariffs are levied on goods passing through a country, not on imports or exports directly, and C) ad valorem tariffs are imposed as a percentage of the total value of goods, not as a specific fee per unit.

Which of the Following Statements Is True of Tariffs