Practice mode / Non-Tariff Trade Barriers What is true under a tariff-rate quota? A Option A: The over-quota tariff rate exceeds the within-quota tariff rate B Option B: The within-quota tariff rate exceeds the over-quota tariff rate C Option C: The within-quota tariff rate plus the over-quota tariff rate equals 100 percent D Option D: The within-quota tariff rate equals the over-quota tariff rate Correct answer A. The over-quota tariff rate exceeds the within-quota tariff rate Explanation Imports within the quota pay a low within-quota tariff, while imports beyond it pay a higher over-quota tariff, which is what makes the system restrictive. Show answer Report a problem Answer checked 11 October 2026 · How we write and check questions
Question 01 / Non-Tariff Trade Barriers A government permits a set number of goods to be imported each year but does not say where they must come from or who may import them. What is this trade barrier called? A Option A: A tariff-rate quota B Option B: A global quota C Option C: An import tariff D Option D: A selective quota Correct answer B. A global quota Show answer Open question
Question 02 / Non-Tariff Trade Barriers For the American public as a whole, what is the effect of export subsidies paid by foreign governments on goods sold to the United States? A Option A: They are equivalent to an export quota B Option B: They help more than they hurt C Option C: They are equivalent to an import quota D Option D: They hurt more than they help Correct answer B. They help more than they hurt Show answer Open question
Question 03 / Non-Tariff Trade Barriers ABC Co. sells its computers in Japan at a lower price than in its home market. This dumping happens because demand for ABC’s computers in Japan is ____ because ____ are available from other nations? A Option A: More elastic in Japan; fewer substitutes are available from other nations B Option B: More inelastic in Japan; fewer substitutes are available from other nations C Option C: More inelastic in Japan; more substitutes are available from other nations D Option D: More elastic in Japan; more substitutes are available from other nations Correct answer D. More elastic in Japan; more substitutes are available from other nations Show answer Open question
Question 04 / Non-Tariff Trade Barriers What is the effect of foreign government export subsidies on goods in which Pakistan has a comparative disadvantage? A Option A: Lead to increases in Pakistani consumer surplus B Option B: Encourage Pakistan’s production of competing goods C Option C: Lower the welfare of all Pakistanis D Option D: Encourage Pakistani workers to demand higher wages Correct answer A. Lead to increases in Pakistani consumer surplus Show answer Open question
Discussion