Econ Unit 10 Flashcards

Questions and Answers

What is the purpose of quotas?

To limit how much of a good can be imported (correct)

To ban all imports from a country

To keep prices on domestic goods low

To restrict the availability of a good from a certain country

Which best describes how standards help domestic producers?

Standards provide financial support for producers.

Standards offer incentives to ensure high quality.

Standards require goods to meet basic requirements. (correct)

Standards restrict the import of cheap goods.

Which type of trade barrier is explicitly used for political purposes?

Embargoes (correct)

Quotas

Standards

Tariffs

Customs duty on cars produced overseas is a type of?

Negative incentive and tariff. Signup and view all the answers

How are subsidies similar to tariffs?

Both aim to disadvantage imports. Signup and view all the answers

Which group directly benefits from subsidies?

Producers Signup and view all the answers

Tariffs and subsidies are both types of?

Incentives. Signup and view all the answers

What is the government's aim in setting quotas?

To increase sales of domestic goods Signup and view all the answers

What term describes a ban or restriction on trade with another country?

Embargo Signup and view all the answers

On which country has the United States imposed an embargo since 1960?

Cuba Signup and view all the answers

Trade agreements are helpful because they allow countries to?

Trade for necessary goods. Signup and view all the answers

The Free Trade Agreement Tariff Tool allows US businesses to?

Access tariff rates when planning to export. Signup and view all the answers

Which best describes ASEAN?

A regional organization promoting growth in Southeast Asia. Signup and view all the answers

Trade agreements can cause jobs to go to countries that provide those jobs?

Efficiently. Signup and view all the answers

International trade organizations promote free trade by encouraging countries to?

Remedy trade surpluses. Signup and view all the answers

Countries establish internal economic zones in order to?

Have fewer economic restrictions. Signup and view all the answers

Which group primarily helps settle trade disputes?

World Trade Organization Signup and view all the answers

Which group works to help members establish internal political stability?

Association of Southeast Asian Nations Signup and view all the answers

What is one stated purpose of the World Trade Organization?

To monitor trade policies of many countries. Signup and view all the answers

How do trade agreements of international organizations affect trade?

By encouraging countries to balance imports and exports. Signup and view all the answers

Study Notes

Trade Barriers and Their Purposes

Quotas limit the amount of specific goods that can be imported to protect domestic industries and maintain lower prices.
Standards ensure goods meet minimum quality requirements, benefiting domestic producers by maintaining market integrity.
Embargoes are trade barriers imposed for political reasons, prohibiting trade with specific countries.

Trade Incentives

A customs duty on imported cars is a negative incentive and classified as a tariff, aiming to discourage foreign goods.
Subsidies and tariffs both serve to disadvantage imported goods, helping domestic products remain competitive.
Producers directly benefit from subsidies, which provide financial support to enhance their viability.

Governmental Impacts on Trade

The primary purpose of setting quotas is to increase domestic sales by limiting foreign competition.
An embargo is defined as a complete trade ban or restriction with another nation. The U.S. has maintained an embargo against Cuba since 1960.

Trade Agreements and Organizations

Trade agreements facilitate the exchange of essential goods between nations, promoting economic interaction.
The Free Trade Agreement Tariff Tool helps U.S. businesses access tariff rates vital for export planning.
ASEAN (Association of Southeast Asian Nations) is focused on promoting economic growth in Southeast Asia.

International Trade Dynamics

Trade agreements can lead to job relocation to countries where production is more efficient.
International trade organizations aim to promote free trade by addressing and remedying trade surpluses among countries.
Internal economic zones are established to reduce economic restrictions, fostering easier trade and investment.

Dispute Resolution and Political Stability

The World Trade Organization plays a crucial role in resolving trade disputes between member nations.
The Association of Southeast Asian Nations focuses on helping its members achieve internal political stability.
The World Trade Organization also monitors trade policies globally, ensuring compliance and fairness in international trade.

Effects of Trade Agreements

Trade agreements influence economic activities by promoting balanced import and export ratios, benefiting all participating countries.

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Test your knowledge with our flashcards on key concepts from Economics Unit 10. This quiz covers topics such as quotas and the importance of standards for domestic producers. Challenge yourself and reinforce your understanding of these essential economic principles.