Economics-R-Us : Vocabulary Group #2

What are the 3 economic questions?

• What to produce? How To Produce? For whom to produce?

• Who will produce? Why you produce? How long to produce?

• Why to produce? Tell who to produce? Things to produce?

What is an embargo?

• A tax placed on imports.

• A limit placed on imports.

• A government blocks all trade with another country.

• A government focuses on products that can be produced most efficiently.

What is a quota?

• A tax placed on imports during a given time.

• A limit placed on imports during a given time.

• A government order to stop all trade.

• A focuses on products that can be produced most efficiently.

A trade barrier is meant to

• encourage the flow of goods & services between countries

• slow or block the flow of goods & services between countries

• make people obey the government

• require the flow of goods & services between countries

Purpose: To make imported goods more expensive

• Quota
• Tariff
• Embargo

Purpose: To hurt a country's economy

• Quota
• Tariff
• Embargo

Purpose: To prevent too much of a good from entering a country

• Quota
• Tariff
• Embargo

What is a tariff?

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

In 1962, the United States prohibited all imports and exports to and from Cuba.

• Tariff
• Embargo
• Quota

True or False: A trade barrier is something that blocks or hinders trade from happening?

• True
• False