Trade Barriers and Free Trade Quiz

What is an embargo?

• A tax on imported goods

• A limit on the quantity of goods imported

• A complete ban on trade with a country

• Government payments to domestic producers

What are standards in the context of trade barriers?

• A tax on goods

• Limits on the quantity of goods

• Requirements a good must meet before import

• Government payments to producers

What is one of the goals of economic sanctions?

• To change a specific nation's behavior

• To increase foreign competition

• To reduce domestic employment

• To support international trade

What is a cost associated with quotas for consumers?

• Consumers can get imported goods at lower prices

• Consumers cannot get imported goods once the quota is met

• Consumers have unlimited access to imported goods

• Consumers benefit from increased competition

How can standards benefit domestic consumers?

• By increasing the variety of products

• By protecting them from substandard or dangerous products

• By lowering prices

• By promoting foreign goods

What can happen to domestic consumers when unattainable standards are imposed?

• They benefit from lower prices

• They face increased prices

• They have more product choices

• They receive better quality products

What is a potential downside of subsidies for foreign workers?

• Increased job opportunities

• Reduced wages

• Damage to industries with a comparative advantage

• Increased market access

How do subsidies help firms in the domestic market?

• By reducing their profitability

• By increasing their production costs

• By helping them stay profitable

• By eliminating competition

How do trade barriers affect the quantity in the market?

• They increase the quantity

• They have no effect on the quantity

• They limit the quantity

• They double the quantity