Benchmark 3 - Economy A

A tariff....

• Encourages people to buy goods made from their country.
• Increases trade between other countries.
• Stops trade completely.
• Only placed to encourage democracy.

What is a tariff?

• A government order to stop trade
• A limit placed on imports
• A tax placed on imports

What is an embargo?

• A government order to stop trade.
• A limit placed on imports.
• A tax placed on imports.

What is a quota?

• A government order to stop trade.
• A limit placed on imports.
• A tax placed on imports.

Japanese auto firms agree to limits set in Washington D.C., on the # of Japanese cars that may be sold in the U.S.

• Embargo
• Quota
• Tarriff
• Standard

China’s most favored nation trading status will be taken away if congress and the President agree that the Chinese Government  is guilty of human rights abuses. All Chinese imports will experience a sharp increase in taxes if China is no longer considered a most favored nation.

• Tarriff
• Quota
• Embargo
• Subsidies

In order to help Russian farmers sell more food, some people want to put a tax on the food imported from other countries. This is an example of a(n)

• quota
• tariff
• embargo
• voluntary exchange

What is a problem with exchanging currency?

• People make more money by trading currency.
• Most people want to use American dollars to trade.
• Banks do not like to exchange their money for other currencies.
• It costs more to do business because banks charge fees for exchanges.

A free-trade zone means:

• You don't have to pay money to get items.
• There are no tariffs between the countries in this zone.
• Trade happens less often.
• Trade does not happen.

Money that people to use to make trade easier is called

• credit cards
• taxes
• tariff
• currency