How Much You Know About Protectionism?

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How Much You Know About Protectionism? - Quiz

Do you understand what trade is? Are you familiar with protectionism? Take this protectionism quiz and check your knowledge of the topic. Protectionism is a kind of government action to improve a country's economy. Whether you know all about this concept or you wish to learn, this quiz is helpful both ways. Go for it and see what you score on this protectionism quiz. All the best! Do share the quiz with others and challenge them on scores.


Questions and Answers
  • 1. 

    What is the other name for protectionism?

    • A.

      Economy protectionism

    • B.

      Trade protectionism

    • C.

      Import protectionism

    • D.

      Export protectionism

    Correct Answer
    B. Trade protectionism
    Explanation
    Trade protectionism refers to the practice of imposing restrictions on imports and promoting domestic industries by using measures such as tariffs, quotas, and subsidies. It is aimed at shielding domestic industries from foreign competition and protecting domestic jobs and businesses. Trade protectionism is also known as protectionism because it focuses on protecting the domestic economy from international trade competition.

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  • 2. 

    Who is the father of protectionism?

    • A.

      Bertil Ohlin

    • B.

      Friedrich List

    • C.

      Eli Heckscher

    • D.

      None of the above

    Correct Answer
    B. Friedrich List
    Explanation
    Friedrich List is considered the father of protectionism because he was a German economist who advocated for the use of protective tariffs and trade barriers to protect domestic industries from foreign competition. He believed that developing countries needed to protect their industries in order to promote economic growth and industrialization. List's ideas on protectionism have had a significant influence on economic policies around the world.

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  • 3. 

    Protectionism refers to the government policies that restrict ___________ trade to help _________ industries.

    • A.

      International, domestic

    • B.

      Domestic, international

    • C.

      Local, small-scale

    • D.

      None of the above

    Correct Answer
    A. International, domestic
    Explanation
    Protectionism refers to the government policies that restrict international trade to help domestic industries. This means that the government imposes barriers such as tariffs, quotas, or subsidies to protect domestic industries from foreign competition. By limiting imports and promoting domestic production, protectionism aims to support local businesses, preserve jobs, and stimulate economic growth within the country.

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  • 4. 

    What does a government do under trade protectionism?

    • A.

      Import taxes

    • B.

      Enact tariffs

    • C.

      Boost the price of foreign-made products

    • D.

      All of the above

    Correct Answer
    D. All of the above
    Explanation
    Under trade protectionism, a government implements various measures to protect domestic industries and reduce competition from foreign companies. Enacting tariffs and import taxes are common strategies used to restrict imports and make foreign-made products more expensive. By doing so, the government aims to boost the price of foreign-made products, making them less competitive compared to domestic goods. Therefore, the correct answer is "All of the above" as all these actions are part of trade protectionism.

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  • 5. 

    What could be the reason for protectionism?

    • A.

      Infant industries

    • B.

      National Defense

    • C.

      Employment

    • D.

      All of the above

    Correct Answer
    D. All of the above
    Explanation
    The reason for protectionism could be all of the above. Protectionism is a trade policy that aims to protect domestic industries from foreign competition. Infant industries may need protection initially to grow and compete with established industries. National defense is another reason for protectionism as it ensures self-sufficiency in critical industries during times of conflict. Protectionism also serves as a means to protect domestic employment by reducing competition from foreign companies, thereby safeguarding jobs for domestic workers.

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  • 6. 

    Which of the following methods of protection raises revenue for the government?

    • A.

      Tariff

    • B.

      Quota

    • C.

      Embargo

    • D.

      Subsidies

    Correct Answer
    A. Tariff
    Explanation
    Tariff is a tax imposed on imported goods, which raises revenue for the government. When a country imposes a tariff on imported goods, it increases the price of those goods, making them less competitive compared to domestically produced goods. This encourages consumers to choose domestic products, which in turn boosts the domestic economy and generates revenue for the government through the collection of tariffs. Therefore, tariffs are a method of protection that not only helps to protect domestic industries but also raises revenue for the government.

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  • 7. 

    Tariffs are used to protect “domestic and small-scale industries.”

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    Tariffs are a form of trade barrier that impose additional taxes on imported goods, making them more expensive for consumers. This increased cost makes domestically produced goods comparatively cheaper and more attractive to consumers, thereby protecting domestic industries. Tariffs can be particularly beneficial for small-scale industries that may struggle to compete with larger, more established foreign companies. Therefore, the statement that tariffs are used to protect domestic and small-scale industries is true.

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  • 8. 

    What is a total ban on imported products called?

    • A.

      Subsidy

    • B.

      Embargo

    • C.

      Quota

    • D.

      Tariff

    Correct Answer
    B. Embargo
    Explanation
    An embargo refers to a total ban on imported products. It is a government-imposed restriction that prohibits the importation of certain goods or products from specific countries. This measure is usually taken for political or economic reasons, such as to protect domestic industries, retaliate against another country, or enforce trade sanctions.

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  • 9. 

    Putting restrictions on imports may help to decrease the balance of payments deficit on the current account.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    Restricting imports can help decrease the balance of payments deficit on the current account because when a country restricts imports, it reduces the amount of money flowing out of the country to pay for foreign goods. This can help decrease the current account deficit, which is the difference between a country's exports and imports. By reducing imports, a country can increase its export competitiveness and promote domestic industries, which can help improve the balance of payments and reduce the deficit.

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  • 10. 

    What term is suitable for this example? In 2015, the EU paid British Farmers 10p for every pint of milk produced.

    • A.

      Tariff

    • B.

      Quota

    • C.

      Subsidy

    • D.

      Financial Protectionism

    Correct Answer
    C. Subsidy
    Explanation
    The term "subsidy" is suitable for this example because it refers to financial assistance provided by the government to support a specific industry or group. In this case, the EU is providing financial support to British farmers by paying them 10p for every pint of milk produced. This subsidy helps to incentivize milk production and support the farmers financially.

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