Free Trade vs Protectionism Quiz

What is the most common trade barrier used in protectionism?

• Embargo

• Quota

• Subsidy

• Tariff

What is the purpose of an import quota?

• To increase the amount of imported goods

• To limit the amount of imported goods

• To reduce the cost of imported goods

• To promote free trade

What is the main advantage of protectionism for workers?

• Increased competition

• Job security

• Higher wages

• More vacation time

What is the purpose of protecting infant industries?

• To support established industries

• To prevent competition

• To encourage imports

• To promote innovation

What is the biggest winner in free trade according to the text?

• Multinational corporations

• Consumers

• Domestic industries

• Government officials

What is one advantage of free trade for consumers?

• Higher taxes

• Lower quality goods

• Cheaper goods and services

• Limited access to goods

What is the goal of the World Trade Organization (WTO)?

• To promote protectionism

• To resolve trade disputes

• To support multinational corporations

• To limit international trade

What was the recent example of a backlash against free trade mentioned in the text?

• World Trade Organization

• European Union

• Brexit

• NAFTA

What is the general consensus among economists regarding free trade?

• It will promote war

• It will hurt domestic industries

• It will lead to economic downfall

• It is better than protectionism

What is the purpose of an embargo in trade?

• To promote free trade

• To limit the amount of imported goods

• To punish or put pressure on another country

• To increase the cost of imported goods