Trade Barriers Quiz – Flashcards
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How are subsidies similar to tariffs?
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Both aim to disadvantage imports.
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How do quotas help domestic producers?
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Quotas facilitate the sale of more domestic goods.
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Tariffs and subsidies are both types of
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incentives.
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What is the government's aim in setting quotas?
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to increase sales of domestic goods
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Customs duty on cars produced overseas is a type of
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not positive incentive and subsidy.
not negative incentive and subsidy.
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What is the purpose of quotas?
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to limit how much of a good can be imported
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Which best describes how standards help domestic producers?
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Standards require goods to meet basic requirements.
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Which group directly benefits from subsidies?
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producers
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Which best describes what a subsidy does?
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It keeps the price of domestic goods relatively low.
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What purpose do financial incentives serve?
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They act as trade barriers.
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How do embargoes most negatively affect a domestic market?
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by depriving domestic producers of needed goods, restricting their ability to trade
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Who ultimately pays for tariffs, consumers or producers?
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consumers
