Standard #5: Trade and Trade Barriers

What is a tariff?

• Tax on imported goods

• To stop trading with a business or country

• A limit on imported goods

Trade is the 

• voluntary exchange of goods/services and benefits both sides 
• required exchange of goods/services 

A barrier is meant to 

• encourage the flow of trade
• block or slow down trade
• make people obey the government 

If a country limits the amount of an imported good, they are using a 

• embargo
• tariff
• quota

When a country refuses to trade with others it is participating in a trade ______

• tariff
• embargo
• quota

A tariff is a ______

• tax placed on imported goods
• a limit placed on imported goods
• a stop of all trade 

Why would a country impose a tariff or quota on imported goods?

• to raise the price of imported goods and encourage people to buy local
• to raise the price of imported goods to help other countries make more money
• to be mean!

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

• Tariff
• Embargo
• Quota

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 quota?

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