Trade Barriers — Quiz

Question 1

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 2

Which group directly benefits from subsidies?

Revolt · Accepted Answer

producers

Question 3

Which best describes what a subsidy does?

Revolt · Accepted Answer

It keeps the price of domestic goods relatively low.

Question 4

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

Revolt · Accepted Answer

Cuba

Question 5

How are subsidies similar to tariffs?

Revolt · Accepted Answer

Both allow domestic goods to compete against foreign goods.

Question 6

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

Revolt · Accepted Answer

embargoes

Question 7

What is the purpose of quotas?

Revolt · Accepted Answer

to limit how much of a good can be imported

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

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 10

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

Revolt · Accepted Answer

Cuba

Trade Barriers — Quiz Answers