Economics Unit 2 review

What is a tariff?

• Tax on imported goods

• To stop trading with a business or country

• A limit on imported goods

A quota is a limit on an imported good. Which is an example of a quota helping local farmers?

• Taxing corn from another country.

• Allowing less corn to be bought from other countries' farms.

• To stop buying corn from another country

Goods and services brought in from other countries

• supply

• exports

• imports

• tariff

A tax on imports

• tariff

• import tax

• supply

• embargo

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

A barrier is meant to 

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

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

• tariff
• embargo
• quota

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!

A subsidy is

• a cash grant or loan from the government to support the business.

• a law that promotes safety.

• a tax on imports.

• a specific number of imports allowed.

A standard is

• a cash grant or loan from the government to support the business.

• a tax on imports.

• an official ban on trade.

• a requirement that promotes safety on all products.