Barriers to trade

What is the most common economic system in the world today?

• market economy

• mixed economy

• command economy

• traditional economy

What is a tariff?

• a refusal to buy goods from another country

• a limit on the number of imports

• a tax on imports

• a refusal to sell to another country

What is a quota?

• a limit on the number of imports

• a tax on imports

• a refusal to buy goods from another country

• a refusal to sell to another country

What is an embargo?

• a refusal to buy goods from another country

• a tax on imports

• a limit on imports

• a refusal to sell to another country

What is the purpose of a trade barrier?

• to raise prices in another country

• to make money from another country

• to restrict trade with another country and boost domestic production

• to make another country do something illegal

Which is an example of a quota?

• The U.S. stops trade with China.

• The U.S. limits the amount of foreign cars brought into our country.

• The U.S. pays a high tax on BMW cars brought into the country.

Which is an example of a trade barrier?

• Japan is allowed to send as many electronic products to the U.S. as they want.

• The U.S. freely trades with other countries with no restrictions.

• A high tax is placed on all diamonds received from Africa.

The price of one nation’s currency in terms of another nation’s currency

• tariff

• embargo

• quota

• exchange rate

Which of these European countries has the least economic freedom and most government control?

• Germany

• Russia

• United Kingdom

• North Korea

Russia is best at producing and trading oil; Germany exports cars. What is this concept called?

• Specialization

• Tariff

• Embargo

• Quota