Chapter 7: Government Policy and International Trade

This trade barrier limits the number of products that can be brought into a country.

• Tariff
• Embargo
• Quota
• Subsidy

This is a tax on imports that is used to increase price of foreign products and raise government revenue. 

• Tariff
• Embargo
• Quota
• Subsidy

This is the most restrictive of the trade restrictions a nation can use to close off all importation of a product.

• Tariff
• Embargo
• Quota
• Subsidy

If nations limit trade in of clothing who will benefit?

• Domestic Consumers of clothing
• Foreign Producers of clothing
• Domestic producers of clothing
• department stores who sell clothing

A means of preventing a foreign product or service from freely entering a nation's territory.

• trade surplus
• trade barriers
• trade embargo
• none of above

The policy of imposing duties or quotas on imports in order to protect home industries from overseas competition.

• free trade
• balance of trade
• protectionism

Which term refers to the total value of a country's exports and imports of goods and services?

• Trade surplus
• Current account deficit
• Gross Domestic Product (GDP)
• Balance of payments

Which are instruments of trade policy?

• Tariffs
• Government subsidies
• Income taxes
• Labour re-training programs

What type of tariff is a 10% tariff on a pair of jeans?

• A specific tariff
• An unspecific tariff
• A harmonised tariff
• An ad valorem tariff

What are objectives of WTO?

• Increase standards of living
• Expand production and trade in goods, services
• Attain full employment; Increase real income and effective demand
• All the above are correct