A tariff expressed as a fixed percentage of the value of a traded commodity is a(n):
A)export tariff
B)ad valorem tariff
C)compound tariff
D)import tariff

Question

Quizplus · Accepted Answer

An ad valorem tariff is a tariff expressed as a percentage of the value of a traded commodity. It is based on the assessed value of an item as opposed to a fixed amount. In contrast, an import tariff (D) is a tax on imported goods, but it can be either an ad valorem tariff or a specific tariff. A compound tariff (C) is a combination of both ad valorem and specific tariffs. An export tariff (A) is a tax on goods leaving a country, not entering it, so it is not applicable to this question.

A Tariff Expressed as a Fixed Percentage of the Value