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Trade Barriers Answers

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1
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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.
2
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Which type of trade barrier is explicitly used for political purposes?

A
standards
B
embargoes
C
quotas
D
tariffs
3

Why do countries provide financial incentives?

A
Financial incentives act as trade barriers.
B
Financial incentives limit imports.
C
Financial incentives set standards.
D
Financial incentives restrict all trade.
4

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
5

What term describes a ban or restriction on trade with another country?

Answer not available
6

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.
7

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.
8

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

A
Cuba
B
Iran
C
North Korea
D
Syria
9

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.
10

importeddomestic

A
imported
B
domestic
11

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.
12

Which group directly benefits from subsidies?

A
exporters
B
sellers
C
producers
D
importers
13

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

Answer not available
14

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
15

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.
16

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.
17

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
18

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
19

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.
20

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.

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