Answers GA-GSE Personal Finance and EconomicsTrade Barriers

Trade Barriers Answers

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Which best describes what a subsidy does?

It keeps the price of domestic goods relatively low.

It raises the price of imported goods.

It encourages the import of foreign goods.

It eliminates all taxes on domestic goods.

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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

to force domestic industries to sell higher quality goods

to restrict foreign influence in a sector

to restrict importation of a foreign good

to lower the price of foreign goods

to punish other countries

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

positive incentive and subsidy.

negative incentive and subsidy.

positive incentive and tariff.

negative incentive and tariff.

Why do countries provide financial incentives?

Financial incentives act as trade barriers.

Financial incentives limit imports.

Financial incentives set standards.

Financial incentives restrict all trade.

What is the purpose of quotas?

to ban all imports from a country

to ensure specific goods are not available to consumers

to limit how much of a good can be imported

to keep prices on domestic goods low

Which best describes how standards help domestic producers?

Standards require goods to meet basic requirements.

Standards provide financial support for producers.

Standards restrict the import of cheap goods.

Standards offer incentives to ensure high quality.

How are subsidies similar to tariffs?

Both are types of taxes.

Both aim to lower the price of domestic goods.

Both are types of tax breaks and financial assistance.

Both allow domestic goods to compete against foreign goods.

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

Answer not available

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

Cuba

Iran

North Korea

Syria

How do quotas help domestic producers?

Quotas facilitate increased exports of domestic goods.

Quotas lower the cost of domestic goods.

Quotas limit the number of producers that compete in a sector.

Quotas facilitate the sale of more domestic goods.

Which group directly benefits from subsidies?

exporters

sellers

producers

importers

Tariffs and subsidies are both examples of

monetary restrictions for the domestic producer.

economic benefits for the consumer.

economic benefits for the international producer.

incentives—one positive and one negative.

Which best describes how standards help domestic producers?

Standards require goods to meet basic requirements.

Standards provide financial support for producers.

Standards restrict the import of cheap goods.

Standards offer incentives to ensure high quality.

What is the government’s aim in setting quotas?

to create more competition in the market

to increase sales of domestic goods

to keep tariffs high

to limit export of domestic goods

Which of these is a positive incentive for domestic producers?

a subsidy on imported cars

a tariff on cars

a subsidy on domestic oranges

a tariff on clothes