Suppose that Pakistan imposes a tariff on ballpoint pens of 25 rupees per pen plus 12 percent of the pen's value, this is an example of a (an) ?
Correct answer: C. compound tariff
- A. specific tariff
- B. ad valorem tariff
- C. compound tariff
- D. effective tariff
Explanation
A compound tariff combines a specific charge per unit, Rs25 per pen, with an ad valorem charge based on value, 12 percent. This differs from a purely specific or purely ad valorem tariff.
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