4. USAEO International and Development
Trade Policy — Quiz
Test your understanding of trade policy with 5 practice questions.
Practice Questions
Question 1
Which of the following best describes the primary economic rationale for imposing a tariff on imported goods?
Question 2
Suppose a country imposes a quota on the import of a particular good. Which of the following outcomes is most likely?
Question 3
Consider a small open economy that imposes a specific tariff of $2 per unit on a good. The world price of the good is $10. After the tariff, what is the domestic price of the good?
Question 4
Which of the following groups is most likely to lose from the imposition of an import tariff on steel in a country that is a net importer of steel?
Question 5
A country imposes an import tariff on a good. In the presence of this tariff, which of the following statements about the deadweight loss is correct?