Which game theory model is commonly used to analyse oligopoly?
Correct answer A. Prisoner's Dilemma
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Non-Tariff Trade Barriers MCQs
Non-Tariff Trade Barriers MCQs cover the ways governments restrict imports without a simple tax, such as quotas, dumping duties, subsidies and tariff-rate quotas. They help economics students, CSS and PMS candidates and UGC NET aspirants check their grasp of international trade policy. Every question shows the correct answer instantly, so you can learn as you go.
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Suppose a tariff and an import quota cause the same rise in the domestic price of steel. Which statement is then correct?
Correct answer B. They have different impacts on how income is distributed
If a tariff and an import quota raise the domestic price of steel by the same amount, what follows?
Correct answer C. They have identical impact on how much is produced and consumed
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What are antidumping duties used for?
Correct answer B. Offset the margin of dumping
Suppose Norway, which imports computers under free trade, imposes an import quota of 800 computers to reduce imports. Compared with free trade, what happens to Norway’s consumer surplus and producer surplus?
Correct answer D. Decrease, increase
When domestic demand is growing, how does an import quota compare with a tariff?
Correct answer A. It is more restrictive on a country's imports than a tariff
If import licences are auctioned to domestic importers in a competitive market, who receives their scarcity value (the revenue effect)?
Correct answer A. The domestic government
Import quotas usually lead to all of the following EXCEPT which outcome?
Correct answer C. Domestic producers of the imported good being harmed
Claiming that South Koreans are dumping DVDs in the United States means claiming what?
Correct answer B. Koreans are selling DVDs in the US below their production cost
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How frequently do governments worldwide auction quota licences to the highest bidder?
Correct answer A. Seldom
In some industries, Japanese employers avoid laying off workers and so end up with surplus goods they cannot sell at home without cutting prices. To limit losses, they sell the goods abroad at prices well below Japanese prices. What is this practice called?
Correct answer C. Dumping
Which quotas cut off trade completely?
Correct answer B. Embargoes
On what do the welfare effects of a quota largely depend?
Correct answer D. All of the above
When can the home government capture the revenue effect of an import quota?
Correct answer B. If quota licences are auctioned to the highest-bidding importing company
Which kind of quota is an example where foreigners hold the quota licences?
Correct answer C. Export quota
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Which of the following would NOT be classed as a non-tariff trade barrier?
Correct answer D. Antidumping/countervailing duties applied to imports
In essence, what is a tariff-rate quota?
Correct answer D. A two-tier tariff applied to a country's imports
Which form of dumping is usually linked to a recession or excess inventories in the exporting country?
Correct answer D. Sporadic dumping
What is it called when a firm unloads a temporary build-up of inventory on foreign markets because of unexpected changes in supply and demand at home?
Correct answer D. Sporadic dumping
Which trade barrier shielded US car makers from foreign competition between 1981 and 1984?
Correct answer B. Export quotas imposed by the Japanese government
About Non-Tariff Trade Barriers MCQs
This topic sits inside international economics and looks at trade protection beyond ordinary tariffs. The questions ask how an import quota changes domestic prices and producer surplus, why a tariff-rate quota combines a quota with two tariff levels, and how persistent, predatory and sporadic dumping differ. You will also meet export subsidies, domestic production subsidies, voluntary export restraints and anti-dumping cases, often framed through short scenarios about steel, oil or computer imports. Examiners like these items because they test whether you can trace who gains and who loses from each policy rather than simply recall definitions.
Exams that include Non-Tariff Trade Barriers MCQs
Pakistan
- CSS
- PMS
- FPSC
- Lecturer tests
India
- UGC NET
- UPSC CSE
- State PSC exams
Bangladesh
- BCS
- Bangladesh Bank recruitment
Frequently asked questions
What is a non-tariff trade barrier?
A non-tariff trade barrier is any government measure other than an import tax that limits trade. Common examples are import quotas, licensing rules, voluntary export restraints, domestic subsidies, anti-dumping actions and strict product standards. They raise the cost or reduce the quantity of imports without a direct customs duty.
What is the difference between a quota and a tariff-rate quota?
A quota sets a fixed maximum quantity that may be imported. A tariff-rate quota allows a set quantity in at a low tariff and charges a much higher tariff on imports above that quantity. So a tariff-rate quota is a two-tier tariff rather than an absolute limit.
How many Non-Tariff Trade Barriers MCQs are on MCQs360?
MCQs360 currently has 48 Non-Tariff Trade Barriers MCQs, each with an instant answer. They are free to practise with no sign-up. Work through them after revising quotas and dumping, then return to the ones you missed to strengthen your understanding of trade policy.
Last reviewed October 2026