ECON Protectionism and Preferential tariffs

ECON Protectionism and Preferential tariffs

Multiple Choice

limit the flow of goods, services, and productive resources between countries.

• trade surplus

• trade barriers

• balance of trade

Multiple Choice

A type of economic policy that attempt to protect businesses in a country from foreign competition, usually by putting tariffs on goods from other countries to make them more expensive

• Free trade

• Protectionism

• Interdependence

• Specialization

Multiple Choice

The UK has imposed a ban on Syrian oil exports as a political measure. This is an example of a ......

• Tariff

• Quota

• Embargo

• None of these

Multiple Choice

A total ban on imported products is a .....

• Tariff

• Quota

• Embargo

• Subsidy

Multiple Choice

A tax or duty that raises the price of imported products is a .....

• Quota

• Tariff

• Embargo

• Subsidy

Multiple Choice

An import quota is a

• tax on import quantities above the legal limit.
• way to increase tariff revenues for the exporting country.
• legal limit on the amount of a good that can be imported into a country.
• legal incentive for members of WTO to increase their exports of a good or service.

Multiple Choice

Which method of protection raises revenue for the government?

• domestic subsidies

• embargo

• quota

• tariff

Multiple Choice

What is a tariff?

• A tax on exported goods

• An increase in the price of a good so the store owner makes money

• A tax on imported goods

• the cost of a good

Multiple Choice

Countries in a trading group generally do not give preferential tariffs to the partners in the group.

• TRUE

• FALSE

Multiple Choice

The exporting country benefits from preferential tariffs.

• TRUE

• FALSE

Multiple Choice

A disadvantage of preferential tariffs is that consumers may lack goods from competing suppliers.

• TRUE

• FALSE