Tariffs

Which statement BEST reflects the difference between tariffs and quotas?

• Tariffs raise prices on exports, while quotas set limits on imports.

• Tariffs raise prices on imports, while quotas set limits on exports.

• Tariffs raise prices on exports, while quotas set limits on exports.

• Tariffs raise prices on imports, while quotas set limits on imports.

What is the purpose of a tariff?

• To encourage people to buy goods made in their own country.

• To increase trade between other countries.

• To stop trade completely.

• To encourage democracy.

Why would a country impose a tariff or quota on imported goods?

• to raise the price of imported goods and encourage people to buy local

• to raise the price of imported goods to help other countries make more money

How are tariffs and quotas alike?

• They both restrict or limit trade between countries.

• They both completely stop trade between countries.

• They both increase trade between countries.

• They both make trading a lot easier between countries.

What does a trade barrier do?

• encourage the flow of trade

• block or slow down trade

• make people obey the government 

What term means a government tax on imports?

• Tariff

• Passport

• Free Trade

• Union

What is the advantage of participating in the European Union (EU)?

• Eliminated tariffs and increase of free trade

• Low tariffs and no embargos

• High tariffs and no free trade

• Embargoes, tariffs, and quotas

Which of the following is a primary effect of imposing tariffs on imported goods?

• A) Increase in domestic production

• B) Decrease in government revenue

• C) Increase in foreign investment

• D) Decrease in domestic employment

How do tariffs impact the price of imported goods?

• A) They decrease the price

• B) They have no effect on the price

• C) They increase the price

• D) They stabilize the price

What is a common reason for a country to implement tariffs?

• A) To promote international trade

• B) To protect domestic industries

• C) To reduce government income

• D) To increase foreign dependency