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Trade Barriers Answers

8 verified answers
1
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Tariffs and subsidies are both examples of

m
monetary restrictions for the domestic producer.
e
economic benefits for the consumer.
e
economic benefits for the international producer.
i
incentives—one positive and one negative.
2
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What is the government’s aim in setting quotas?

t
to create more competition in the market
t
to increase sales of domestic goods
t
to keep tariffs high
t
to limit export of domestic goods
3

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
4

Which best describes the standards required of foreign producers?

F
Foreign producers have more stringent standards than domestic producers.
F
Foreign producers must meet the same standards as domestic producers.
F
Foreign producers must meet specific standards based on their origin.
F
Foreign producers do not use standards that harm consumers.
5

What is the purpose of quotas?

t
to ban all imports from a country
t
to ensure specific goods are not available to consumers
t
to limit how much of a good can be imported
t
to keep prices on domestic goods low
6

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

s
standards
e
embargoes
q
quotas
t
tariffs
7

How do quotas help domestic producers?

Q
Quotas facilitate increased exports of domestic goods.
Q
Quotas lower the cost of domestic goods.
Q
Quotas limit the number of producers that compete in a sector.
Q
Quotas facilitate the sale of more domestic goods.
8

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

Answer not available
9

Which of these is a positive incentive for domestic producers?

a
a subsidy on imported cars
a
a tariff on cars
a
a subsidy on domestic oranges
a
a tariff on clothes
10

Which group directly benefits from subsidies?

e
exporters
s
sellers
p
producers
i
importers

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