Protectionism methods

What is a tariff?

• A tax on exports
• A tax on imports
• A production tax
• An export subsidy

Who benefits from tariffs imposed on imports?

• Foreign producers
• Domestic consumers
• Government budgets
• Domestic producers

Which is a disadvantage of tariffs?

• Encourages exports
• Raises prices for consumers
• Decreases production
• Promotes unemployment

What is a subsidy?

• A tax on goods
• A government payment per unit

• An import ban
• A consumption tax

How do subsidies affect domestic producers?

• They are unaffected
• They benefit directly
• They face higher costs
• They gain more market share

Which of the following is a criticism of subsidies?

• Promotes inefficiency
• Encourages innovation
• Distorts market prices
• Drains public resources

What is a quota?

• A limit on imports
• A price cap
• A minimum price policy
• A maximum price policy

Who benefits from quotas on imports?

• Foreign consumers
• Domestic consumers
• Domestic producers
• Foreign producers

How do quotas impact consumers?

• Reduces their options
• Lowers prices
• Improves quality
• Enhances innovation

What is the PRIMARY goal of a tariff?

• To promote imports
• To reduce imports
• To increase producer revenue

• To protect jobs