MODULE 44: Barriers to Trade

Printed Page 442(cont.)

Tackle the Test: Multiple-Choice Questions

Question

Which of the following is put forth as a reason for trade restrictions?
A.
National pride can take precedence over the gains from trade.
B.
Domestic industries need protection from foreign competition while they develop a comparative advantage.
C.
Citizens don’t want to send their money overseas.
D.
Countries don’t want to become overly reliant on other countries.
E.
All of the above.

Which of the following is put forth as a reason for trade restrictions?
Question

The purpose of protectionism is to protect domestic
A.
resources.
B.
consumption levels.
C.
industries.
D.
exporters.
E.
all of the above.

The purpose of protectionism is to protect domestic
Question

Which of the following would result from a U.S. tariff on imported cars?
A.
The profit of U.S. car manufacturers would decrease.
B.
The price paid for cars in the U.S. would increase.
C.
More cars would be imported.
D.
Fewer domestically made cars would be sold in the United States.
E.
More cars from all sources would be sold in the United States.

Which of the following would result from a U.S. tariff on imported cars?
Question

An import quota is a
A.
minimum quantity of a good that may be imported.
B.
minimum quantity of a good that a factory must produce and sell overseas.
C.
maximum quantity of a good that may be imported.
D.
maximum quantity of a good that a factory may produce and sell overseas.
E.
maximum price that a company can charge for imports.

An import quota is a
Question

Which of the following would result if China imposed an import quota on telephones that influenced the amount of trade?
A.
The price of telephones in China would decrease.
B.
The Chinese government would collect more taxes on imported telephones.
C.
More telephones made outside of China would be sold in China.
D.
More telephones made in China would be sold in China.
E.
More telephones from all sources would be sold in China.

Which of the following would result if China imposed an import quota on telephones that influenced the amount of trade?