Which of the Following Statements Is True of Tariffs

question 68

Multiple Choice

Which of the following statements is true of tariffs?

• A) Tariffs increase an imported product's appeal to buyers.
• B) Transit tariffs are the most widely-levied tariffs.
• C) Ad valorem tariffs are levied as a specific fee for each unit of an imported product.
• D) Export tariffs are used by countries when they believe an export's price is lower than it should be.

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Definitions:

U.S. Currency

The system of money in general use in the United States, including coins and paper notes issued by the government.

Production Possibility Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs representing resources or other constraints.

Specialization and Trade

The practice where individuals or entities focus on the production of specific goods or services to trade for others, increasing efficiency and consumer choice.

Terms of Trade

The proportion between a country's export price index and its import price index.