The difference between a specific tariff and an ad valorem tariff is that a specific tariff
a. is a set amount of money per unit of a product, while an ad valorem tariff is a set percentage of product price
b. is a set percentage of product price, while an ad valorem tariff is a set amount of money per unit of a product
c. names a particular good to which the tariff applies, while an ad valorem tariff applies to large classes of products
d. applies only to imports, while an ad valorem tariff applies only to exports
e. sets a strict quota limit on the amount one individual can purchase, while an ad valorem tariff sets no such limit
A
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A group of firms are selling undifferentiated products if
A) consumers perceive the products identical between the firms. B) production costs are the same for all firms. C) the firms are selling goods that are identical, though consumers view them as different. D) the firms are part of a single cartel.
The demand for Farm fresh brand apple juice is likely to be:
A. very price elastic, because there are many close substitutes available. B. less price elastic, because there are many close substitutes available. C. very price elastic, because the adjustment time is so fast. D. less price elastic, because the adjustment time is so slow. AACSB: Reflective Thinking
According to experience, what is the most effective solution to highway congestion?
a) to discount transit passes b) to discourage urban sprawl by subsidizing urban apartment rents c) to build more roads d) to set a price for access to roads, which is paid by those who use them
The slope of the short-run aggregate supply curve depends on how sharply _____
Fill in the blank(s) with the appropriate word(s).