Ad valorem tariffs are collected as ?
Correct answer: B. a percentage of the price of the product
- A. fixed amounts of money per unit traded
- B. a percentage of the price of the product
- C. a percentage of the quantity of imports
- D. All of the above
Explanation
An ad valorem tariff is calculated as a percentage of the imported product’s value or price. A fixed monetary charge per unit is instead called a specific tariff.
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