Quiz on Free Trade and Protectionism

What is free trade?

• Trade that only allows domestic products

• Trade without restrictions on products bought and sold

• Trade that imposes special taxes on imports

• Trade with restrictions on imports and exports

What is a tariff?

• A requirement for high quality standards

• A ban on trade with another country

• A tax imposed on imported products

• A limit on the quantity of goods that can be imported

What is an embargo?

• A ban on the import of a product or trade with another country

• A limit on the number of imports

• A tax on imported goods

• A restriction on foreign currency availability

What does protectionism involve?

• Encouraging free trade

• Lowering tariffs on foreign goods

• Shielding a country's industries from foreign competition

• Increasing the number of imports

What is the purpose of quality standards in trade?

• To increase the number of imports

• To lower the prices of imported goods

• To eliminate tariffs on foreign products

• To require imports to meet high standards