3. International Economics

Trade Policy — Quiz

Test your understanding of trade policy with 5 practice questions.

Practice Questions

Question 1

Which of the following best describes a tariff-rate quota (TRQ)?

Question 2

In a small open economy, demand is given by $Q_d=200-2P$ and supply by $Q_s=40+P$. If the world price is $P_w=30$ and a specific tariff $t=10$ is imposed, what is the import volume after the tariff?

Question 3

What is the government's tariff revenue in the scenario above?

Question 4

In a small open economy, a per-unit production subsidy $s$ to domestic producers at world price $P_w$ results in:

Question 5

Which of the following is an example of a technical barrier to trade (TBT)?