Trade Barriers v. Free Trade
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by Stephanie Foy
| 8 Questions
1
1
A country places a 50% tax on all tire imports into the country. Which type of trade barrier is this, and what will this barrier do to the market clearing price of tires?
The barrier is a quota. The price will rise.
The barrier is a quota. The price will fall.
The barrier is a tariff. The price will fall.
The barrier is a tariff. The price will rise.
2
1
Assume that the US government places new requirements on all olive oil. What type of trade barrier is this?
Tariff
Embargo
Standard
Quota
3
1
Trade barriers are primarily meant to protect
domestic consumers.
foreign producers.
domestic producers.
foreign consumers.
4
1
A trading bloc is most closely associated with
absolute advantage.
trade barriers.
free trade.
government subsidies.
5
1
Which of the following are trading blocs?
NAFTA, EU, ASEAN
tariffs, NAFTA, EU
tariffs, quotas, embargoes
embargoes, standards, EU
6
1
Look at the list below. Which of the following statements would be an argument in favor of free trade. Select all that apply.
Free trade leads to greater efficiency of production.
Free trade can lead to economic development around the world.
Free trade results in worker exploitation.
Free trade leads to lower prices and more options for people.
Free trade leads to high levels of structural unemployment.
Free trade can hurt infant industries.
7
1
Which of the following statements is supported by the political cartoon above?
Free trade increases the protection and control of domestic industries.
Free trade reduces the availability of products to consumers.
Free trade increases the supply and variety of products while lowering prices.
Free trade reduces the number of jobs in a country.
8
1
Which of the following statements is supported by the image above?
Free trade improves lives of citizens.
Free trade can have negative consequences for some workers.
Free trade helps workers rise up from poverty.
Free trade can lead to greater satisfaction for businesses and workers.
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