Lesson 4.1.6
4.1.6 Restrictions on free trade Quiz: Pearson Edexcel Economics, Unit 4
20 questions
In partnership with Revision Ninja
Lesson 4.1.6, Restrictions on free trade: 20 multiple choice questions for the Pearson Edexcel Economics (9EC0), Unit 4: Theme 4: A global perspective, written with Revision Ninja.
Host it live on the board and students join with a game code on their own devices, or revise alone with Free Play. The answers are revealed in the game.
The 20 questions
-
What term describes protecting new domestic industries from foreign competition?
- Export subsidisation
- Infant industry protection
- Trade diversion
- Trade creation
-
What type of trade barrier is a tax imposed on imported goods?
- Embargo
- Quota
- Tariff
- Subsidy
-
What term describes a physical limit on the quantity of imports?
- Tariff
- Standard
- Subsidy
- Quota
-
What financial support does a government give domestic producers to reduce costs?
- Tariff
- Quota
- Subsidy
- Tax
-
Which protectionist measure includes strict safety regulations and technical standards on imports?
- Import quota
- Domestic subsidy
- Import tariff
- Non-tariff barrier
-
An import has a world price of £10. If a £2 specific tariff is imposed, what is the domestic price?
- £12
- £10
- £8
- £20
-
What is the most likely domestic effect of imposing an import quota on a product?
- Decreased domestic output
- Lower domestic prices
- Higher domestic prices
- Increased import volume
-
What is the primary impact of a government subsidy granted to domestic producers?
- Increased import volume
- Lower domestic prices
- Decreased domestic output
- Higher domestic prices
-
What is a major negative impact of trade protectionism on domestic consumers?
- Higher market prices
- Lower market prices
- Higher consumer surplus
- Increased product choice
-
What long-run risk do domestic producers face when protected from foreign competition?
- Falling market prices
- Reduced efficiency
- Reduced total profits
- Increased competition
-
How does a tariff on imported goods directly affect government revenue?
- Revenue increases
- Revenue decreases
- Revenue falls zero
- No revenue change
-
If a tariff is raised on an import with highly price-elastic demand, tariff revenue will likely:
- Double
- Rise
- Fall
- Remain unchanged
-
What term describes exporting a product at a price below its cost of production?
- Quota allocation
- Tariffing
- Dumping
- Protectionism
-
Which argument justifies temporary protectionist measures to allow a new domestic sector to grow?
- Anti-dumping
- Infant industry
- Sunset industry
- Declining industry
-
Why are non-tariff barriers often harder to challenge internationally than traditional tariffs?
- Disguised regulations
- Lower domestic prices
- Explicit tax rates
- Complete transparency
-
What is a major secondary risk when using protectionism to safeguard domestic employment?
- Higher wage inflation
- Increased export sales
- Foreign trade retaliation
- Lower consumer prices
-
Which protectionist measure restricts foreign supply without requiring direct government spending?
- Export subsidy
- Domestic subsidy
- Import quota
- Production grant
-
Why is protectionism considered a regressive policy in terms of income distribution?
- Increased consumer surplus
- Equal tax distribution
- Lower-income burden
- Higher-income burden
-
Which trade policy creates quota rent for licence holders rather than tax revenue for governments?
- Ad valorem tax
- Tariff
- Domestic subsidy
- Import quota
-
Why do economists often criticise the infant industry argument for protectionism?
- Costs fall rapidly
- Protection becomes permanent
- Competition increases sharply
- Imports increase rapidly
Related quizzes
- Globalisation Quiz · 4.1.1 · 20 questions
- Specialisation and trade Quiz · 4.1.2 · 20 questions
- Pattern of trade Quiz · 4.1.3 · 20 questions
- Terms of trade Quiz · 4.1.4 · 20 questions
- Trading blocs and the World Trade Organisation Quiz · 4.1.5 · 20 questions
- Balance of payments Quiz · 4.1.7 · 20 questions
- Exchange rates Quiz · 4.1.8 · 20 questions
- International competitiveness Quiz · 4.1.9 · 20 questions
- Absolute and relative poverty Quiz · 4.2.1 · 20 questions
- Inequality Quiz · 4.2.2 · 20 questions