Multiple Choice
Identify the
choice that best completes the statement or answers the question.
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1.
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Which of the following is a true statement about tariffs?
a. | All tariffs are designed to restrict trade. | b. | A tariff is paid by
the exporter. | c. | Tariffs discourage consumers from buying. | d. | Tariffs lower the
prices consumers pay. |
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2.
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Which is the most common type of trade restriction?
a. | embargoes | c. | quotas | b. | protective tariffs | d. | revenue tariffs |
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3.
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Which of the following is an international organization that governs trade
between over 140 member nations?
a. | European Union | c. | NAFTA | b. | GATT | d. | WTO |
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4.
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Arguments offered in favor of free trade include…
a. | maintaining job security. | c. | protecting the
environment. | b. | protecting infant industries. | d. | the benefits of
competition. |
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5.
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Arguments offered in favor of protectionism include…
a. | its effect on consumer prices. | c. | national
security. | b. | its effect on exports. | d. | the benefits of specialization. |
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