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- 1. Multiple Choice
Which method of protection raises revenue for the government?
domestic subsidies
embargo
quota
tariff
- 2. Multiple Choice
An argument against trade protectionism is that it will increase
competition for domestic industries
domestic price level
the current account deficit
opportunities for domestic infant industries
- 3. Multiple Choice
what would reduce an economy's protection against the import of cars?
a lower exchange rate
a higher quotas imported cars
a higher tariff on imported cars
higher subsidy for domestic car producers
- 4. Multiple Choice
What would be an economic benefit to a country of imposing a tariff on imported goods?
A it would increase global productivity
B it would make the country's exports more competitve
C it would put pressure on foreign suppliers to reduce their prices
It would reduce the prices paid by consumers for imported goods
- 5. Multiple Choice
Which of the following is NOT an argument in favor of protectionism?
Protectionism shields infant industries from foreign competition
Protectionism safeguards workers’ jobs
Protectionism promotes industries that are essential to national security
Protectionism makes domestic firms more competitive in the long run
- 6. Multiple ChoiceAn import quota is atax on import quantities above the legal limit.way to increase tariff revenues for the exporting country.legal limit on the amount of a good that can be imported into a country.legal incentive for members of WTO to increase their exports of a good or service.
- 7. Multiple Choice
A tax or duty that raises the price of imported products is a .....
Quota
Tariff
Embargo
Subsidy
- 8. Multiple Choice
Tariffs are used to protect “Infant Industries”
True
False
- 9. Multiple Choice
Countries may impose tariffs on imports to retaliate to the protectionist policies of another country. This is called a Trade War.
True
False
- 10. Multiple Choice
Quotas are not popular with consumers because they limit consumer choice. This makes products more expensive.
False
True
- 11. Multiple Choice
The main beneficiaries of quotas are the workers, managers and shareholders who will face less competition from foreign companies.
False
True
- 12. Multiple Choice
A total ban on imported products is a .....
Tariff
Quota
Embargo
Subsidy
- 13. Multiple Choice
The UK has imposed a ban on Syrian oil exports as a political measure. This is an example of a ......
Tariff
Quota
Embargo
None of these
- 14. Multiple Choice
Financial Protectionism is when a national government instructs banks to give priority when making loans at favourable interest rates to domestic businesses.
True
False
- 15. Multiple Choice
Over-production in developed countries may be released into the markets of developing nations, which undercuts domestic prices and domestic producers may be forced to leave the market. This is called....
Dumping
Quota
Tariffs
Embargo
- 16. Multiple Choice
Placing restrictions on imports may help to reduce a balance of payments deficit on current account
True
False
- 17. Multiple Choice
Countries employ measures such as complex legal forms, health and safety inspections and specific product specifications. This discourages imports by raising costs.
True
False
- 18. Multiple Choice
In 2015 the EU paid British Farmers 10p for every pint of milk produced. This is an example of a .....
Tariff
Quota
Form of Financial Protectionism
Subsidy
- 19. Multiple Choice
If legislation is passed to protect against imports the main beneficiaries will be foreign firms.
False
True
- 20. Multiple Choice
An example of murky or hidden protectionism is government measures that indirectly discriminate against foreign workers, investors and traders.
True
False
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