Trade & Trade Barriers

A tariff is when a _______ is put on an imported good

• Tax
• Limit
• Block

Which of the following trade barriers is a block or restriction on trade with another country.

• Tariff
• Embargo
• Quota

A country might place a limit or __________ on another country to weaken their economy.

• Embargo
• Tariff
• Quota

In 2010, China placed a tax on imported American poultry of up to 105.4%. This is an example of which trade barrier?

• Tariff
• Market
• Embargo
• Quota

If a country produces one product at a fast pace and can do what they do best and trade for the rest, this is called what?

• Specialization
• Currency Exchange
• Tariff
• Quota

True or False: An embargo is meant to increase the amount of trade between two countries?

• True 
• False

What is a quota?

• 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 EU to increase their exports of a good or service.

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

• Subsidy
• Quota
• Tariff
• Embargo

Which statement BEST reflects the difference between tariffs and quotas?

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

What is the purpose of a tariff?

• To encourage people to buy goods made in their own country.
• To increase trade between other countries.
• To stop trade completely.
• To encourage democracy.