Lesson 4.1.4

4.1.4 Protectionism Quiz: Pearson Edexcel Business, Unit 4

20 questions

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Lesson 4.1.4, Protectionism: 20 multiple choice questions for the Pearson Edexcel Business (9BS0), Unit 4: Global business, written with Revision Ninja.

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The 20 questions

  1. What is the definition of a tariff?

    • Tax on imports
    • Export subsidy
    • Government grant
    • Limit on imports

  2. What is the definition of an import quota?

    • Financial grant
    • Physical import limit
    • Tax on imports
    • Export subsidy

  3. Which non-tariff barrier is created using government safety regulations?

    • Domestic subsidies
    • Technical standards
    • Export tariffs
    • Import quotas

  4. How does a domestic subsidy help local firms compete against foreign imports?

    • Reduces production costs
    • Increases import taxes
    • Raises selling prices
    • Restricts import volumes

  5. What is the main aim of government protectionism?

    • Shielding domestic industries
    • Maximising global growth
    • Encouraging foreign imports
    • Promoting free trade

  6. What is a direct effect of imposing a tariff on imported goods?

    • Higher import prices
    • Increased import volumes
    • Lower consumer prices
    • Decreased tax revenue

  7. A tariff of 15% applies to an import priced at 400. What is the tariff amount?

    • 60
    • 15
    • 415
    • 340

  8. A quota limits imports to 10,000 units. Demand is 70,000 units. What must domestic producers supply at most to meet demand?

    • 50,000 units
    • 60,000 units
    • 70,000 units
    • 20,000 units

  9. If tariffs are placed on imported steel, what happens to domestic car manufacturers?

    • Lower production costs
    • Higher export subsidies
    • Reduced selling prices
    • Higher input costs

  10. What is a major economic risk associated with introducing protectionist policies?

    • Increased consumer choice
    • Trade retaliation
    • Higher business efficiency
    • Lower domestic prices

  11. What term describes newly established domestic industries that governments protect from foreign competition?

    • Infant industries
    • Sunset industries
    • Monopoly power
    • Foreign affiliates

  12. Who is most likely to suffer from higher prices when an import tariff is introduced?

    • Local exporters
    • The government
    • Domestic consumers
    • Domestic producers

  13. What risk arises when trading partners retaliate against newly imposed tariffs?

    • Dumping
    • A trade war
    • Trade creation
    • A currency union

  14. A tariff of 20% applies to an import priced at 150. What is the price paid by domestic buyers after the tariff?

    • 30
    • 180
    • 135
    • 170

  15. Which group has the strongest financial incentive to lobby governments for protectionist measures?

    • Importers
    • Domestic producers
    • Foreign consumers
    • International couriers

  16. What was the primary objective of the General Agreement on Tariffs and Trade?

    • Reducing trade barriers
    • Promoting migration
    • Setting exchange rates
    • Enforcing single currencies

  17. What state action lowers domestic production costs and gives home firms an unfair advantage?

    • Deflationary policy
    • Currency appreciation
    • Import quota
    • Government subsidy

  18. Which of these is a non-tariff trade barrier?

    • Customs duty
    • Export tax
    • Import licensing
    • Import tariff

  19. What trade barrier places a physical limit on the volume of imports allowed?

    • Domestic embargo
    • Import tariff
    • Government subsidy
    • Import quota

  20. What is a major drawback of protectionism for domestic consumers?

    • Lower inflation
    • Increased competition
    • Higher prices
    • Greater product choice

All Pearson Edexcel Business quizzes