Specialization and Trade Barriers

Front

voluntary trade

Back

both parties freely agree to trade and benefit from exchanging goods and services

Front

any activity which slows or outright blocks the free exchange of goods and services

Back

trade barriers

Front

a trade barrier that places a tax on imported goods

Back

tariff

Front

services that can be produced most efficiently and cost effectively

Back

specialization

Front

Quota

Back

limit on imported goods

Front

Embargoes

Back

frequently used to punish rouge states and block all trade

Front

Which of the following trade barriers is a block or restriction on trade with another country: Tariff, Embargo, Quota?

Back

Embargo

Front

Which trade barrier limits the amount (quantity) of a good that can be imported?

Back

Quota

Front

Which statement BEST reflects the difference between tariffs and quotas?

Back

Tariffs raise prices on imports, while quotas set limits on imports.

Front

What is the purpose of a tariff?

Back

To encourage people to buy goods made in their own country.