Tariffs and GDP quiz

What is an import?

• A service you provide to another country

• A good or service produced domestically

• A good brought into a country from abroad

• A tax on domestic products

What is an export?

• A product sold domestically

• A service bought from another country

• A good transported within a state

• A good sold to another country

What is the primary purpose of a tariff?

• To increase exports

• To punish foreign investors

• To protect domestic industries and raise revenue

• To lower consumer prices

What happens during a trade war?

• Countries reduce tariffs to help each other

• Countries support each other’s exports

• Countries impose tariffs or quotas to harm each other’s economies

• Countries merge their economic systems

What does protectionism aim to do?

• Promote free trade

• Encourage foreign investment

• Shield local industries by taxing imports

• Reduce domestic employment

What does Gross Domestic Product (GDP) measure?

• How many people are unemployed

• Total value of goods and services produced in a country over a year

• The number of imports and exports

• Income inequality in a country

What is a major limitation of GDP as an economic measure?

• It tracks unemployment too closely

• It doesn’t account for taxes

• It doesn’t show how wealth is distributed or whether people can afford basic needs

• It includes foreign investments only

What does the unemployment rate measure?

• The number of people who don’t want to work

• The percentage of people not working, including retirees

• The percentage of people looking for work but unable to find it

• All part-time workers

What is one limitation of the unemployment rate?

• It includes children

• It only counts people with college degrees

• It doesn’t count people who gave up looking for work or who are underemployed

• It tracks inflation too closely

What is the inflation rate?

• The number of people buying goods

• The rate at which prices rise, reducing purchasing power

• A measure of interest rates

• The rate of exports growing