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Worksheets

Trade Barrier Scenarios

Total questions: 31

Worksheet time: 17mins

Name
Class
Date
1.

In 2012, the United States Commerce Department announced that it would impose a tax ranging from 2.9% to 4.7% on Chinese made solar panels.

a)

tariff

b)

embargo

c)

quota

d)

subsidy

2.

U.S. State Department officials confirm that the current administration has decided to continue the prohibition of all U.S. trade with Cuba.

a)

embargo

b)

quota

c)

tariff

d)

subsidy

3.

True or False: An embargo is meant to increase the amount of trade between two countries.

a)

True

b)

False

4.

In 2010, China placed a tax on imported American poultry of up to 105.4%. This is an example of a:

a)

tariff

b)

embargo

c)

market

d)

quota

5.

Which might make an embargo against a country successful?

a)

The citizens in the country suffer because of the embargo and demand a change from their government.

b)

People in the country are not affected by the embargo.

c)

Merchants are able to continue doing business.

d)

The country does not need to trade with other countries.

6.

Japanese auto firms agree to limits set in Washington D.C., on the # of Japanese cars that may be sold in the U.S.

a)

quota

b)

tariff

c)

embargo

d)

standard

7.

In 1962, the United States prohibited all imports and exports to and from Cuba.

a)

embargo

b)

tariff

c)

quota

d)

standard

8.
A barrier is meant to 
a)
encourage the flow of trade
b)
block or slow down trade
c)
make people obey the government 
9.
Why would a country impose a tariff or quota on imported goods?
a)
to raise the price of imported goods and encourage people to buy local
b)
to raise the price of imported goods to help other countries make more money
c)
to be mean!
10.
 The US bans beef imports from Canada after a Mad Cow Disease outbreak there. This is an example of which type of barrier to trade?
a)
Standards
b)
Quota
c)
Subsidy
d)
Tariff
11.
Government payments to a local supplier to reduce the supplier costs. This helps local businesses survive because it is getting direct aid from the federal government. What is this called?
a)
Balance of trade
b)
protectionism
c)
exchange rate
d)
subsidy
12.

How do trade barriers affect a country's economy?

a)

Trade barriers increase the amount of traded goods.

b)

Trade barriers make trade easier among countries.

c)

Trade barriers make people better off in that country

d)

Trade barriers increase the cost of traded goods.

13.

Which effect is the MOST LIKELY result of a free trade agreement between countries?

a)

decreased trade

b)

traded goods and services

c)

agreed taxes

d)

increased trade

14.

Which U.S. trade policy would encourage imports of foreign cars?

a)

raising production standards

b)

increasing tariffs on imports

c)

removing quotas on imports

d)

increasing export subsidies

15.

What would be the MOST LIKELY effect to these industries if other countries placed tariffs on these U.S. products?

a)

These industries would stop production.

b)

These industries would increase their profits

c)

Prices for these goods would stay the same.

d)

Jobs in these industries would decrease.

16.

“The U.S. government places a tax on all imported cars.” Who Benefits?

a)

foreign consumer

b)

domestic producer

c)

domestic consumer

d)

foreign producer

17.

Which event would MOST LIKELY cause a decrease in the market price for cherries?

a)

Consumer Demand for Cherries Goes Up

b)

Frost Destroys Cherry Blossoms

c)

Disease Damages 20% of Cherry Trees

d)

Michigan Cherry Production Increases 47%

18.

Which trade restriction might Japan use to improve its economy?

a)

increase taxes on imports

b)

establish a trade embargo

c)

increase quotas on imports

d)

increase taxes on exports

19.

“The U.S. government limits the amount of sugar imported into the U.S. by 1 ton per year.” Who loses?

a)

foreign consumer

b)

domestic consumer

c)

domestic producer

d)

foreign producer

20.

Trade of goods without being forced to do so

a)

scarcity

b)

voluntary exchange

c)

interdependence

d)

coercion

21.

People rely on multiple groups of people to get the resources that they want and need.

a)

independence

b)

dependence

c)

interdependence

d)

multidependence

22.

The condition of not being able to get all the goods & services one wants. It exists because human demand for goods & services exceed the quantity of goods & services that can be produced using all the available resources.

a)

scarcity

b)

surplus

c)

coercion

d)

voluntary exchange

23.

Foreign goods and services purchased from sellers in other nations

a)

imports

b)

exports

24.

Domestic goods and services sold to buyers in other nations

a)

imports

b)

exports

25.

Exchanging goods, services, or for other goods, services, or resources; or for money

a)

trade

b)

exports

c)

imports

d)

globalization

26.

Used to produce or provide a good or service (i.e. land, labor capital goods)

a)

productive resources

b)

unproductive resources

c)

things & stuff

d)

tools/technology

27.

When people or nations produce a smaller amount of goods and services than they consume

a)

productive resources

b)

voluntary exchange

c)

exports

d)

specialization

28.

Goods and services produced in a country outside of one's home country

a)

Foreign goods

b)

Domestic goods

c)

Imports

d)

Exports

29.

The total dollar amount of all final goods and services produced in a country in a year.

a)

Gross Domestic Product (GDP)

b)

Gross Domestic Product per Capita

c)

Standard of Living

d)

Exports

30.

The total dollar amount of all final goods and services produced in a country in a year divided by the country's population.

a)

Gross Domestic Product (GDP)

b)

Gross Domestic Product per Capita

c)

Standard of Living

d)

Scarcity

31.

The amount of goods and services available per person in an economy.

a)

GDP

b)

Specialization

c)

Standard of Living

d)

Interdependence