WorksheetsTYPES OF TARIFF
Total questions: 20
Worksheet time: 10mins
What does an Ad Valorem Tariff mean?
A combination of different tariffs
A duty that is not applicable to certain goods
A percentage of the value of imported goods
A fixed amount per unit
What is a Specific Tariff?
A tariff based on the value of goods
A fixed rate per unit of measure
A tariff that varies with market conditions
A combination of ad valorem and specific tariffs
What characterizes a Compound Tariff?
It is only based on the value of goods
It is only applicable to raw materials
It combines ad valorem and specific tariffs
It is a fixed rate for all imports
In a Mixed Tariff, what is the determining factor for duty?
The country of origin
The market demand for the product
The average cost of production
The higher of ad valorem or specific tariff
What is the purpose of a Variable Tariff?
To eliminate competition from foreign goods
To encourage imports of raw materials
To impose a high cost on all imports
To protect domestic industries by matching domestic prices
What is a Prohibitive Tariff designed to do?
Encourage imports of luxury goods
Ensure no imports enter the country
Lower the cost of imported goods
Facilitate trade with all countries
What does an Anti-Dumping Duty aim to prevent?
Imports at higher than normal value
Imports at less than normal value
Exports of domestic goods
Trade agreements with other countries
What is the function of Safeguard Duties?
To promote exports
To prevent serious injury to domestic industries
To lower tariffs on all imports
To increase competition in the market
What are MFN Tariffs?
Normal non-discriminatory tariffs charged on imports
Tariffs that are discriminatory
Tariffs that are higher than average market rates
Tariffs that are only applicable to certain countries
What is a Preferential Tariff?
A tariff that is higher than MFN rates
A tariff that is lower than MFN rates for certain countries
A tariff that applies only to raw materials
A fixed tariff for all imports
What does a Bound Tariff ensure?
Tariffs will not exceed an agreed level
Tariffs can be increased without negotiation
Tariffs are only applicable to specific goods
Tariffs are always zero
What is the Applied Tariff?
A tariff that is not enforced
A fixed rate for all imports
The maximum tariff that can be charged
The actual duty charged on imports
What is the main goal of Tariff Rate Quotas?
To standardize tariffs across countries
To eliminate all imports
To protect domestic producers while allowing some imports
To increase the price of imported goods
What does an Escalated Tariff do?
Imposes lower tariffs on final products
Imposes progressively higher tariffs on raw materials and semi-processed goods
Standardizes tariffs across all goods
Eliminates tariffs on all imports
What is the effect of under-valuation in Ad Valorem Tariffs?
It increases government revenue
It is encouraged by the government
It has no effect on duties
It can lead to lower duties being paid
What is the purpose of a tariff?
The purpose of a tariff is to lower consumer prices.
The purpose of a tariff is to protect domestic industries.
The purpose of a tariff is to promote economic growth.
The purpose of a tariff is to increase international trade.
In 1962, the United States prohibited all imports and exports to and from Cuba. This is a(n)...
Tariff
Quota
Embargo
In 2010, Mexico imposed a limit of 250,000 tons of sugar that could be imported into Mexico. This is a(n)...
Tariff
Quota
Embargo
Company XYZ produces cheese in Scotland and exports the cheese, which costs $100 per pound, to the United States. A 20% tax would require Company XYZ to pay the United States government $20 to export the cheese. This is a(n)...
Tariff
Quota
Embargo
What is a tariff?
A tax on exports
A law requiring domestic goods
A tax on imports
A subsidy for local products
