Trade Barriers

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.

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

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

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

Tariffs and subsidies are both types of a. restrictions. b. economic benefits. c. economic penalties. d. incentives.

Which type of goods becomes more expensive as a result of tariffs? a. imported b. domestic

How are subsidies similar to tariffs? a. Both are types of taxes. b. Both aim to lower the price of domestic goods. c. Both try to raise the price of imported goods. d. Both aim to disadvantage imports.

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.

Which best describes why countries establish limits on trade? Check all that apply. a. to force domestic industries to compete b. to restrict foreign influence in a sector c. to restrict importation of a foreign good d. to raise the price of foreign goods e. to punish other countries

On which country has the United States imposed an embargo since 1960? a. Cuba b. Iran c. North Korea d. Syria