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Trade

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

What is a likely result of increasing tariffs?

a)

Increased competition

b)

Higher prices

c)

Greater innovation

d)

More choice for consumers

2.

What is the word for a tax on imports?

a)

Tariff

b)

Quota

c)

Voluntary export restraint

d)

Embargo

3.

A country might increase tariffs for all of the following reasons EXCEPT

a)

Shelter young industries and companies

b)

National security

c)

Lower prices

d)

Protect American jobs

4.

What is free trade?

a)

Trade reflects the impact of

specialisation and exchange rates

b)

This is international trade free from

artificial barriers such as import tariffs,

quotas and other trade barriers

c)

This is international trade with artificial barriers such as import tariffs, quotas and other trade barriers

5.

Why is Trade important for Developing Countries?

a)

A source of foreign currency to help a nation’s balance of payments

b)

An important way of financing imports of essential imports of capital equipment / technologies and energy supplies

c)

A decrease of demand as withdrawal from the circular flow of income and spending + creating negative export multiplier effects

d)

Rising prices for consumers helps to increase real incomes e.g. by opening up monopoly suppliers of energy to new competition

6.

A tariff is

a)

a specific number of imports allowed.

b)

a cash grant or loan from the government to support the business.

c)

an official ban on trade.

d)

a tax on imports.

7.

A subsidy is

a)

a cash grant or loan from the government to support the business.

b)

a law that promotes safety.

c)

a tax on imports.

d)

a specific number of imports allowed.

8.

An embargo is

a)

a tax on imports.

b)

a cash grant or loan from the government to support the business.

c)

an official ban on trade.

d)

a specific number of imports allowed.

9.

A quota is

a)

an official ban on trade.

b)

a limit on or a specific number of imports allowed.

c)

a law that promotes safety.

d)

a tax on imports.

10.

An import is

a)

producing certain goods very well and for a reduced cost.

b)

items sold to other countries.

c)

dependence on others to get products you do not produce and needing to purchase items from them.

d)

items purchased from other countries. Goods come into the USA.