Trade Policy and Barriers · seed 1 · A4, ink-friendly. The answer key prints on its own page for grown-ups.

Trade Barriers: Tariffs, Quotas, and Rules

Civics & Economics · Economics · ages 12-14
Name ______________________   Date ____________

  1. When a government adds a tariff on imported phones, what usually happens to the price shoppers pay?

    • It goes down
    • It goes up
    • It stays exactly the same

  2. What is a tariff?

    • A tax on goods imported from another country
    • A law that bans all trade with other countries
    • A reward paid to companies that export goods

  3. A tariff can protect local factories from foreign competition.

    Circle one:   True   False

  4. A country adds a tariff on imported sugar. Which group benefits most?

    • Families who buy a lot of sugary snacks
    • Countries that export sugar to this country
    • Local sugar farmers, who now compete against cheaper imports less often

  5. Look at the chart. The price of imported trainers went from $40 to $52 after a tariff. How many dollars did the tariff add?

    No tariff40Withtariff52

    Answer: ______________

  6. Which sentence argues FOR a tariff on imported furniture?

    • It protects local furniture makers and jobs
    • It always makes furniture cheaper for every family
    • It has no effect on how furniture is priced

  7. A government keeps a trade barrier even though it raises prices for shoppers. Which reason best explains why?

    • It is required by every trading country
    • It has no real effect on any group
    • It protects jobs in an industry the government wants to keep at home

  8. A steel tariff is added. Which best explains why car buyers might see higher prices, even though the tariff targets steel, not cars?

    • The tariff directly taxes cars sold in stores
    • Carmakers pay more for steel and raise car prices to cover the cost
    • Car buyers get a rebate to offset the tariff
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Answer key

For grown-ups. Fold this page away before handing over the rest.

Trade Barriers: Tariffs, Quotas, and Rules W1-mt_l_l6qXfRle-s1

  1. It goes up · The tariff is added to the cost of each phone, so shoppers end up paying more.
  2. A tax on goods imported from another country · A tariff is a tax added to goods coming in from abroad, which raises their price.
  3. True · Since imported goods cost more with a tariff, local makers of similar goods face less competition.
  4. Local sugar farmers, who now compete against cheaper imports less often · Local sugar farmers gain, since imported sugar becomes more expensive and less appealing to buyers.
  5. 12 · 52 minus 40 is 12. The tariff added $12 to the price.
  6. It protects local furniture makers and jobs · Supporters argue tariffs shield local jobs and factories from cheaper foreign competition.
  7. It protects jobs in an industry the government wants to keep at home · Governments often accept higher prices for shoppers if the barrier saves jobs or industries they consider important.
  8. Carmakers pay more for steel and raise car prices to cover the cost · Tariffs on materials like steel raise costs for makers who use that material, and that cost often gets passed to buyers.
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