Lesson 77: Types of Trade Barriers

What is the price level that exists with the quotas in place?

P1

The quotas cause the supply of foreign-made DVD players in the United States to

decrease.

An infant industry is a well-established industry that can compete in the marketplace.

False

Once the quotas are imposed, what is the level of imports exchanged in the market?

Q1

Governments sometimes put pressure on other countries by limiting exports to those countries for political reasons, like human rights violations.

True

In most cases, trade barriers are harmful to an economy.

True

Non-tariff barriers include licensing requirements for importers.

True

Tariffs provide a government with revenue while protecting domestic industries. Quotas only limit the quantity of imported goods to protect domestic industries and don't provide a government with revenue.

True

When an embargo is placed on a country, no imports from or exports to that country are allowed.

True

After the quotas are imposed, U.S. producers will probably have _______________________________ in the demand for their DVD players.

an increase