Trade, Prosperity, and Protectionism

The tutorial explores the concepts of free trade and protectionism, discussing their advantages and disadvantages. It explains how protectionism uses tariffs, quotas, and other barriers to shield domestic industries, while free trade promotes competitive markets and international cooperation. The video also touches on current events like Brexit, highlighting the ongoing debate over trade policies.

What is the general belief about the relationship between trade and prosperity?

• More trade leads to less prosperity.

• More trade leads to more prosperity.

• Trade has no impact on prosperity.

• Trade decreases prosperity in the long run.

Which of the following is a common method used in protectionism to restrict trade?

• Tariffs

• Subsidies

• Open borders

• Free trade agreements

What is an import quota?

• A subsidy for domestic producers

• A tax on exported goods

• A ban on all imports

• A limit on the amount of a good that can be imported

How can protectionism benefit workers in certain industries?

• By encouraging outsourcing

• By increasing foreign competition

• By protecting jobs from foreign competition

• By reducing the cost of imported goods

Why might protectionism be necessary for national security?

• To promote international trade

• To ensure a supply of essential goods during crises

• To increase foreign dependency

• To reduce domestic production

What is a key advantage of free trade according to most economists?

• It reduces the quality of goods.

• It limits consumer choices.

• It encourages competitive markets.

• It increases government control.

How does free trade benefit consumers?

• By increasing prices

• By providing lower quality goods

• By offering higher quality and cheaper goods

• By reducing the variety of goods available

What is one way free trade promotes international cooperation?

• By reducing trade agreements

• By isolating countries economically

• By making countries more dependent on each other

• By increasing the likelihood of war

What was a significant political event that demonstrated a backlash against free trade?

• The formation of the WTO

• The signing of NAFTA

• Brexit

• The creation of the European Union

What is the role of the World Trade Organization (WTO)?

• To increase trade barriers

• To resolve trade disputes and promote free trade

• To limit multinational corporations

• To support protectionist policies