Mod 44: Barriers to Trade

A country that makes all of its own products and does not import products from overseas is:

• common in the world today

• an open economy

• a closed economy

• a primary economy

• more successful than other countries

What is a tax on imports called?

• income tax

• sales tax

• capital gains tax

• tarrif

• quota

An import quota is a

• maximum quantity of a good that can be imported.

• minimum quantity of a good that must be sold overseas.

• maximum price that a company can charge for imports.

• minimum percentage of a foreign good that must be made in the US.

• maximum number of foreigners who can work in an American company

Which of the following would result in from a US tariff on imported cars?

• Profits of US car manufacturers would decrease.

• Fewer domestically made cars would be sold in the US.

• People would pay less for cars globally.

• More cars from all sources would be sold in the US.

• The price paid for cars in the US would increase.

Which of the following would result if China imposed an import quota on cell phones?

• The price of cell phones in China would decrease.

• The price of cell phones in the US would increase.

• More cell phones from all sources would be sold in China.

• More cell phones made in China would be sold in China.

• The Chinese government would collect more taxes on imported phones.

Which of the following is a difference between the effects of a tariff and the effects of a quota?

• Imports increase with a quote but not a tariff.

• Domestic price increases with a tariff but not a quota.

• Government revenue increases with a tariff but not a quota.

• Domestic supply increases with a quota but not a tariff.

• Fewer people by products with a quota but not a tariff.

Which of the following is put forth as a reason for trade restrictions?

• Not wanting to employ foreign workers.

• Not wanting to be overly reliant on foreign countries

• Protectionism is needed to develop a comparative advantage

• Foreign products are inferior to products made in the USA.

• Not wanting to send money overseas

Where can you find the essential questions for a Harkness Discussion?

• In the Assignment Center in Parker Portal

• Wikipedia

• Google

• On the Topics Page in Parker Portal

• Chat GPT