1. Globalization and Trade
Trade Policy Instruments — Quiz
Test your understanding of trade policy instruments with 5 practice questions.
Practice Questions
Question 1
Which of the following trade policy instruments is characterized by a direct payment from the government to domestic producers for each unit exported?
Question 2
A country imposes a specific tariff of $ \$5 per unit on an imported good. If the world price of the good is $ \$20 and the domestic demand for the good is given by $ Q_D = 100 - 2P $ and domestic supply by $ Q_S = 10 + 3P $. What is the domestic price of the good after the tariff, assuming the country is 'small'?
Question 3
Which of the following non-tariff barriers involves a government purchasing domestic goods or services over imported ones, even if the imported ones are cheaper or of higher quality?
Question 4
When a large country imposes a tariff, which of the following is a potential positive effect on its national welfare?
Question 5
If a country implements a product standard that requires all imported electronic devices to meet specific, unique technical specifications not used elsewhere, what type of non-tariff barrier is this?