Lesson M4.4.1
M4.4.1 Protectionism and economic integration Quiz: OCR Economics, Unit 9
20 questions
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Lesson M4.4.1, Protectionism and economic integration: 20 multiple choice questions for the OCR Economics (H460), Unit 9: The global context, written with Revision Ninja.
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The 20 questions
-
What is a tax imposed specifically on imported goods called?
- Embargo
- Tariff
- Subsidy
- Quota
-
Which trade restriction places a direct physical limit on the quantity of imports?
- Red tape
- Tariff
- Import quota
- Export subsidy
-
What level of economic integration involves a common external tariff alongside no internal tariffs?
- Monetary union
- Customs union
- Single market
- Free trade area
-
Which argument for protectionism involves protecting new domestic firms from established foreign rivals?
- Anti-dumping
- Declining industry
- Infant industry
- Senile industry
-
What occurs when trade shifts from a low-cost non-member producer to a higher-cost member producer?
- Trade creation
- Trade diversion
- Trade reversal
- Trade deflection
-
Which stage of economic integration includes the free movement of labour, capital, goods and services?
- Free trade area
- Single market
- Preferential trade area
- Customs union
-
What organisation enforces global trade agreements and resolves commercial disputes between nations?
- International Monetary Fund
- World Bank
- World Trade Organisation
- OECD
-
What is the term for selling exports below their cost of production in foreign markets?
- Dumping
- Hedging
- Subsidising
- Offshoring
-
A country removes internal tariffs with neighbours but keeps independent external tariffs. What structure is this?
- Customs union
- Economic union
- Common market
- Free trade area
-
If a tariff raises domestic price from £10 to £12 on 1,000 imports, what is government revenue?
- £12,000
- £20,000
- £10,000
- £2,000
-
A nation introduces complex safety checks designed solely to delay foreign imports. What is this?
- Administrative barrier
- Import quota
- Voluntary export restraint
- Tariff
-
Joining a customs union causes a nation to buy wheat cheaper from a member state. What is this called?
- Trade substitution
- Trade creation
- Trade expansion
- Trade diversion
-
The Eurozone, featuring a shared currency and unified central bank, is an example of what?
- Customs union
- Preferential trade area
- Monetary union
- Free trade area
-
A state provides £5 per unit to local manufacturers to lower export prices. What is this intervention?
- Import tariff
- Export subsidy
- Import quota
- Embargo
-
Country A completely bans all imports of goods from Country B for political reasons. What is this?
- Tariff rate quota
- Import quota
- Trade embargo
- Administrative delay
-
A trade bloc adopts both a single currency and harmonised tax rates across all members. What is this?
- Common market
- Economic union
- Free trade area
- Customs union
-
On a supply and demand tariff diagram, which areas represent the deadweight welfare loss?
- One rectangle
- One triangle
- Two rectangles
- Two triangles
-
What happens to domestic consumer surplus when an import tariff is introduced?
- Decreases
- Doubles
- Increases
- Remains unchanged
-
Why might retaliatory tariffs by trade partners harm a nation implementing import tariffs?
- Reduces export demand
- Increases import demand
- Lowers inflation
- Boosts government revenue
-
What primary economic risk arises when protecting an infant industry for too long?
- Deflationary pressure
- Excessive competition
- Currency appreciation
- Production inefficiency
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