Trade Barriers v. Free Trade - Stephanie Foy | Laabri

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 fall.

The barrier is a tariff. The price will rise.

The barrier is a quota. The price will rise.

The barrier is a tariff. The price will fall.

SSEIN2.a

SSEIN2.b

1

Assume that the US government places new requirements on all olive oil. What type of trade barrier is this?

Tariff

Quota

Standard

Embargo

SSEIN2.a

1

Trade barriers are primarily meant to protect

domestic consumers.

foreign consumers.

domestic producers.

foreign producers.

SSEIN2.b

1

A trading bloc is most closely associated with

free trade.

government subsidies.

absolute advantage.

trade barriers.

SSEIN2.c

1

Which of the following are trading blocs?

embargoes, standards, EU

tariffs, NAFTA, EU

NAFTA, EU, ASEAN

tariffs, quotas, embargoes

SSEIN2.c

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 results in worker exploitation.

Free trade can hurt infant industries.

Free trade leads to lower prices and more options for people.

Free trade can lead to economic development around the world.

Free trade leads to high levels of structural unemployment.

SSEIN2.d

1

Which of the following statements is supported by the political cartoon above?

Free trade reduces the availability of products to consumers.

Free trade increases the protection and control of domestic industries.

Free trade reduces the number of jobs in a country.

Free trade increases the supply and variety of products while lowering prices.

SSEIN2.d

1

Which of the following statements is supported by the image above?

Free trade can have negative consequences for some workers.

Free trade improves lives of citizens.

Free trade can lead to greater satisfaction for businesses and workers.

Free trade helps workers rise up from poverty.

SSEIN2.d