Pretest

Question 1

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

Revolt · Accepted Answer

embargoes

Question 2

How are subsidies similar to tariffs?

Revolt · Accepted Answer

Both allow domestic goods to compete against foreign goods.

Question 3

What is the purpose of quotas?

Revolt · Accepted Answer

to limit how much of a good can be imported

Question 4

Which best describes what a subsidy does?

Revolt · Accepted Answer

It keeps the price of domestic goods relatively low.

Question 5

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

Revolt · Accepted Answer

Cuba

Question 6

Which group directly benefits from subsidies?

Revolt · Accepted Answer

producers

Question 7

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 8

How do embargoes most negatively affect a domestic market?

Revolt · Accepted Answer

by depriving domestic producers of needed goods, restricting their ability to trade

Question 9

What is the government’s aim in setting quotas?

Revolt · Accepted Answer

to increase sales of domestic goods

Question 10

How do quotas help domestic producers?

Revolt · Accepted Answer

Quotas facilitate the sale of more domestic goods.

Pretest Answers