Quiz on Import Quotas

What type of goods does Canada impose quotas on, according what we learned in class?

• Electronic goods

• Food products and steel

• Clothing and textiles

• Pharmaceuticals

What is the purpose of a tariff rate quota?

• To ban imports

• To set a price floor

• To control the volume of imports at a lower duty rate

• To increase export taxes

Which of the following is NOT a reason for implementing an embargo?

• Political reasons

• Economic reasons

• Cultural reasons

• Environmental reasons

Which type of embargo targets only trades of oil?

• Trade embargo

• Military embargo

• Fuel embargo

• Cultural embargo

Which of the following is an example of a sanction?

• Comprehensive trade ban

• Targeting a corporation

• Military intervention

• Diplomatic negotiation

Which of the following is a broader application?

• Sanctions

• Embargoes

• Tariffs

• Quotas

What is a common consequence of imposing trade sanctions?

• Increased diplomatic relations

• Increased imports

• Economic isolation

• Lower tariffs

Which of the following is a primary goal of a trade embargo?

• To reduce domestic production

• To promote free trade

• To increase cultural exchange

• To punish a country economically

What is the main difference between a tariff and a quota?

• Tariffs and quotas have no impact on trade

• Tariffs limit the quantity of imports, while quotas impose taxes

• Both tariffs and quotas are forms of subsidies

• Quotas limit the quantity of imports, while tariffs impose taxes

What is a potential effect of a quota on domestic markets?

• Decrease in domestic prices

• Increase in domestic production

• Increase in foreign competition

• Decrease in government revenue