AnswersGA-GSE Personal Finance and EconomicsCurrencies and Exchange Rates

Trade Barriers Answers

15 verified answers2 views
1
Free Preview

What is the government’s aim in setting quotas?

A
to create more competition in the market
B
to increase sales of domestic goods
C
to keep tariffs high
D
to limit export of domestic goods
2
Free Preview

Which of these is a positive incentive for domestic producers?

A
a subsidy on imported cars
B
a tariff on cars
C
a subsidy on domestic oranges
D
a tariff on clothes
3

Which best describes what a subsidy does?

A
It keeps the price of domestic goods relatively low.
B
It raises the price of imported goods.
C
It encourages the import of foreign goods.
D
It eliminates all taxes on domestic goods.
4

On which country has the United States imposed an embargo since 1960?

A
Cuba
B
Iran
C
North Korea
D
Syria
5

How are subsidies similar to tariffs?

A
Both are types of taxes.
B
Both aim to lower the price of domestic goods.
C
Both are types of tax breaks and financial assistance.
D
Both allow domestic goods to compete against foreign goods.
6

importeddomestic

A
imported
B
domestic
7

Which type of incentive makes it more profitable to follow a certain course of action?

Answer not available
8

How do quotas help domestic producers?

A
Quotas facilitate increased exports of domestic goods.
B
Quotas lower the cost of domestic goods.
C
Quotas limit the number of producers that compete in a sector.
D
Quotas facilitate the sale of more domestic goods.
9

Tariffs and subsidies are both examples of

A
monetary restrictions for the domestic producer.
B
economic benefits for the consumer.
C
economic benefits for the international producer.
D
incentives—one positive and one negative.
10

What do quotas and embargoes have in common?

A
They both tend to raise prices.
B
They both affect imports from certain countries.
C
They both set limits on imported goods.
D
They both frequently result in domestic shortages.
11

Often duties and taxes are imposed on cars that are imported from other countries. What types of incentives are these duties and taxes?

A
positive incentive and subsidy.
B
negative incentive and subsidy.
C
positive incentive and tariff.
D
negative incentive and tariff.
12

Which best describes how standards help domestic producers?

A
Standards require goods to meet basic requirements.
B
Standards provide financial support for producers.
C
Standards restrict the import of cheap goods.
D
Standards offer incentives to ensure high quality.
13

Which best describes the standards required of foreign producers?

A
Foreign producers have more stringent standards than domestic producers.
B
Foreign producers must meet the same standards as domestic producers.
C
Foreign producers must meet specific standards based on their origin.
D
Foreign producers do not use standards that harm consumers.
14

What is the purpose of quotas?

A
to ban all imports from a country
B
to ensure specific goods are not available to consumers
C
to limit how much of a good can be imported
D
to keep prices on domestic goods low
15

How do embargoes most negatively affect a domestic market?

A
by depriving domestic producers of needed goods, restricting their ability to trade
B
by helping international producers fill a market void, decreasing domestic trade
C
by preventing domestic producers from trading needed goods with all countries
D
by encouraging international producers to sell new goods for lower prices than domestic goods
16

Which best describes why countries establish limits on international trade? Choose three answers.to force domestic industries to sell higher quality goodsto restrict foreign influence in a sectorto restrict importation of a foreign goodto lower the price of foreign goodsto punish other countries

A
to force domestic industries to sell higher quality goods
B
to restrict foreign influence in a sector
C
to restrict importation of a foreign good
D
to lower the price of foreign goods
E
to punish other countries
17

Which type of trade barrier is explicitly used for political purposes?

A
standards
B
embargoes
C
quotas
D
tariffs

Did you find these answers helpful?

More from this Course

Quiz
15 verified answers

Currencies and Exchange Rates

Quiz
14 verified answers

Currencies and Exchange Rates

Quiz
12 verified answers

Globalization