6.4 Trade Barriers

Question 1

What do quotas and embargoes have in common?

Revolt · Accepted Answer

They both set limits on imported goods.

Question 2

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

Revolt · Accepted Answer

embargoes

Question 3

What is the government’s aim in setting quotas?

Revolt · Accepted Answer

to increase sales of domestic goods

Question 4

Which best describes how standards help domestic producers?

Revolt · Accepted Answer

Standards require goods to meet basic requirements.

Question 5

importeddomestic

Revolt · Accepted Answer

imported

Question 6

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

Revolt · Accepted Answer

negative incentive and tariff.

Question 7

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

Question 8

Which best describes what a subsidy does?

Revolt · Accepted Answer

It keeps the price of domestic goods relatively low.

Question 9

How do quotas help domestic producers?

Revolt · Accepted Answer

Quotas facilitate the sale of more domestic goods.

Question 10

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

6.4 Trade Barriers Answers