Which statement defines a specific tariff?

Which statement defines a specific tariff?

• A. A tax based on the total value of the product (ad valorem).
• B. A fixed charge assessed per unit of output.
• C. A tariff calculated as a fixed amount per unit.
• D. A tax on imports that varies with market price.

Answer: (C)

Tariffs come in two common forms: a specific tariff, which is a fixed amount charged for each unit imported, and an ad valorem tariff, which is a percentage of the product’s value. The statement that defines a specific tariff matches this mechanism exactly because it describes a fixed amount per unit, regardless of the product’s price. That fixed-per-unit nature makes the tariff predictable for importers and independent of market price, unlike tariffs tied to value. The other statements describe tariffs that depend on price or value (ad valorem) or talk about per-unit charges in a context that isn’t about import tariffs, so they don’t fit as the definition of a specific tariff.

Tariffs come in two common forms: a specific tariff, which is a fixed amount charged for each unit imported, and an ad valorem tariff, which is a percentage of the product’s value. The statement that defines a specific tariff matches this mechanism exactly because it describes a fixed amount per unit, regardless of the product’s price. That fixed-per-unit nature makes the tariff predictable for importers and independent of market price, unlike tariffs tied to value. The other statements describe tariffs that depend on price or value (ad valorem) or talk about per-unit charges in a context that isn’t about import tariffs, so they don’t fit as the definition of a specific tariff.