Concept 38: Trade Barriers Quiz

What is a tariff?

• A ban on trade with another country.

• A direct payment to domestic industries.

• A tax on imports.

• A limit on the number of goods imported.

What is a quota in the context of trade barriers?

• A limit on the number of goods imported.

• A direct payment to foreign industries.

• A tax on imported goods.

• A ban on trade with another country.

What is an embargo?

• A limit on the number of goods imported.

• A subsidy to domestic industries.

• A ban on trade with another country.

  Often politically motivated.

• A tax on imports.

What do standards in trade barriers ensure?

• Foreign industries receive subsidies.

• Domestic goods are taxed.

• Imported goods meet specific criteria.

• Imported goods are banned entirely.

What is a subsidy?

• A ban on trade with another country.

• A tax on imported goods.

• A limit on the number of goods imported.

• A direct payment from a government to domestic industries.

What is protectionism?

• Enacting trade barriers to protect domestic industries and workers.

• Encouraging free trade among all countries.

• Eliminating subsidies for domestic industries.

• Reducing tariffs on imported goods.

What is a potential cost of trade barriers?

• Reducing domestic production costs.

• Encouraging global competition.

• Increasing domestic innovation and efficiency.

• Making foreign goods more expensive and less available.

What is the effect of a tariff on imported goods?

• It raises the price of foreign goods.

• It reduces the cost of domestic goods.

• It eliminates the goods from the market.

• It increases the availability of the goods.

What is the primary purpose of trade barriers?

• To reduce domestic production costs.

• To increase global competition.

• To eliminate foreign goods entirely.

• To protect domestic industries and workers.

What is the effect of subsidies on domestic industries?

• They eliminate the need for tariffs.

• They increase the cost of production.

• They reduce the availability of foreign goods.

• They help lower production costs.