Trade Barriers Quiz

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Questions: 10 | Attempts: 123 | Updated: Aug 16, 2023

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Do you know what the trade barriers are? To test your knowledge, try this trade barriers quiz and see how well you understand free trade vs. trade barriers. Here, we have got the questions about the various barriers a trade encounters. If you understand all this well, the questions will be easy for you to answer. You must give this quiz a try and score 100%. All the best! You can share the quiz with others too who are involved in trade and business.

Questions and Answers

1.

What is this protectionist trade restriction called that sets a physical limit on the quantity of a good?
- A.
  
  Quota
- B.
  
  Part
- C.
  
  Want
- D.
  
  Lack
Correct Answer
A. Quota

Explanation
A protectionist trade restriction that sets a physical limit on the quantity of a good is called a quota. Quotas are used by governments to restrict the amount of a specific product that can be imported or exported. They are typically implemented to protect domestic industries from foreign competition or to manage the supply and demand of certain goods in the market. By imposing a quota, the government can control the quantity of the product entering or leaving the country, thereby influencing its availability and price.

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2.

What is the voluntary exchange of goods and services called?
- A.
  
  Bidding
- B.
  
  Broker
- C.
  
  Exchange
- D.
  
  Trade
Correct Answer
D. Trade

Explanation
Trade refers to the voluntary exchange of goods and services between two or more parties. It involves the buying and selling of products or services in return for something of value, such as money or other goods. Trade is a fundamental concept in economics and plays a crucial role in the functioning of markets and the overall economy.

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3.

It is a restriction to regulate international commerce.
- A.
  
  Transportation barrier
- B.
  
  Trade barrier
- C.
  
  Calling barrier
- D.
  
  Marketing barrier
Correct Answer
B. Trade barrier

Explanation
A trade barrier is a restriction that is implemented to regulate international commerce. It can take various forms such as tariffs, quotas, or embargoes, which are designed to limit imports or exports of goods and services. These barriers are usually imposed by governments to protect domestic industries, promote economic growth, or address trade imbalances. By creating obstacles to trade, trade barriers can impact the flow of goods and services between countries, affecting the competitiveness of businesses and influencing global trade patterns.

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4.

What is this tax imported on goods called, which is usually designed to protect domestic production of similar goods?
- A.
  
  Tariff
- B.
  
  Payment
- C.
  
  Rate
- D.
  
  Toll
Correct Answer
A. Tariff

Explanation
A tax imposed on imported goods, known as a tariff, is designed to protect domestic production of similar goods. It increases the cost of imported goods, making them less competitive compared to domestically produced goods. This helps to support and promote local industries by discouraging imports and encouraging consumers to purchase domestic products. Tariffs are a common tool used by governments to protect domestic industries and maintain a favorable trade balance.

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1
0
5.

During 1973, many Middle Eastern countries ceased exporting oil to America in protest against the US support of Israel. What type of trade barrier is this called?
- A.
  
  Tariff
- B.
  
  Quota
- C.
  
  Embargo
- D.
  
  Mountain
Correct Answer
C. Embargo

Explanation
The correct answer is embargo. An embargo is a type of trade barrier where a country prohibits or restricts the import or export of certain goods or services to or from another country. In this case, the Middle Eastern countries stopped exporting oil to America as a form of protest against the US support of Israel. This action aimed to put economic pressure on the US by limiting its access to a vital resource.

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6.

A tariff is when a _______ is put on an imported good.
- A.
  
  Block
- B.
  
  Tax
- C.
  
  Limit
- D.
  
  Stamp
Correct Answer
B. Tax

Explanation
A tariff is a tax that is imposed on imported goods. This tax is typically levied by the government of the importing country in order to protect domestic industries and to generate revenue. Tariffs increase the price of imported goods, making them less competitive compared to domestically produced goods. This encourages consumers to purchase domestic products and supports local industries. Therefore, the correct answer is "Tax".

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7.

What is used to make imported goods more expensive?
- A.
  
  Embargo
- B.
  
  Quota
- C.
  
  Free Trade
- D.
  
  Tariff
Correct Answer
D. Tariff

Explanation
Tariffs are used to make imported goods more expensive. A tariff is a tax imposed by a government on imported goods, which increases the price of these goods and makes them less competitive in the domestic market. This measure aims to protect domestic industries by making foreign products less attractive to consumers and encouraging them to purchase domestically produced goods instead. Tariffs can also be used as a tool to reduce trade deficits and protect national security by controlling the flow of certain goods into the country.

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8.

An embargo is meant to raise the amount of trade between two countries.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
An embargo is not meant to raise the amount of trade between two countries. Instead, it is a trade restriction imposed by one country on another, typically for political or economic reasons. The purpose of an embargo is to limit or prohibit trade in order to exert pressure or punishment on the targeted country. Therefore, the given statement is false.

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9.

A country might place a limit or __________ on another country to weaken their economy.
- A.
  
  Tariff
- B.
  
  Quota
- C.
  
  Embargo
- D.
  
  Tax
Correct Answer
B. Quota

Explanation
A country might place a limit or quota on another country to weaken their economy. This means that the country would restrict the amount of goods or services that can be imported from the other country. By doing so, the country can protect its own domestic industries and reduce competition from the other country. This can lead to a decrease in the other country's exports and ultimately weaken their economy.

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10.

Suppose the US president raised the number of imported peanuts allowed into the country by 100 million pounds per year. What is it called?
- A.
  
  Tariff
- B.
  
  Quota
- C.
  
  Embargo
- D.
  
  None of the above
Correct Answer
B. Quota

Explanation
A quota is a restriction on the quantity of a particular good that can be imported into a country. In this scenario, the US president is increasing the allowed amount of imported peanuts by 100 million pounds per year, which indicates a quota being raised. A tariff refers to a tax imposed on imported goods, while an embargo is a complete ban on trade with a particular country. Therefore, the correct answer is quota.

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Current Version
Aug 16, 2023

Quiz Edited by
ProProfs Editorial Team
Nov 11, 2022

Quiz Created by
Sophia Smith

Trade barriers Quiz

What is this protectionist trade restriction called that sets a physical limit on the quantity of a good?

What is the voluntary exchange of goods and services called?

It is a restriction to regulate international commerce.

What is this tax imported on goods called, which is usually designed to protect domestic production of similar goods?

During 1973, many Middle Eastern countries ceased exporting oil to America in protest against the US support of Israel. What type of trade barrier is this called?

A tariff is when a _______ is put on an imported good.

What is used to make imported goods more expensive?

An embargo is meant to raise the amount of trade between two countries.

A country might place a limit or __________ on another country to weaken their economy.

Suppose the US president raised the number of imported peanuts allowed into the country by 100 million pounds per year. What is it called?