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Questions and Answers
What is the most common form of tariff?
What is the most common form of tariff?
- Ad valorem tariff, which is a fixed percentage on the value of the traded commodity
- Specific tariff, which is a fixed amount of tax per physical unit of the imported or exported commodity
- Export tariff, which is a tax on exported commodities occasionally practiced in developing countries to generate government revenue
- Import tariff, which is a tax on imported commodities usually imposed to limit the volume of imports (correct)
What is an export tariff primarily used for?
What is an export tariff primarily used for?
- Generating government revenue (correct)
- Limiting the volume of exports
- Encouraging international trade
- Protecting domestic industries
What is an ad valorem tariff based on?
What is an ad valorem tariff based on?
- The weight of the traded commodity
- A fixed amount per unit of the traded commodity
- The volume of the traded commodity
- A fixed percentage on the value of the traded commodity (correct)
What is the purpose of a specific tariff?
What is the purpose of a specific tariff?
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Which group typically advocates for trade policies imposing restrictions?
Which group typically advocates for trade policies imposing restrictions?
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What is the primary purpose of an import tariff?
What is the primary purpose of an import tariff?
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What is an export tariff primarily used for in developing countries?
What is an export tariff primarily used for in developing countries?
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What does an ad valorem tariff apply to?
What does an ad valorem tariff apply to?
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Which form of tariff is most commonly imposed to limit the volume of imports?
Which form of tariff is most commonly imposed to limit the volume of imports?
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What is the purpose of an ad valorem tariff?
What is the purpose of an ad valorem tariff?
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