Economics

Home > Economics > The global economy > Features of the global economy: methods of protection

Questions	True	False
A reduction in the quotas on imported goods will raise the price of shoes by decreasing supply.
Subsidies can be classed as a form of regressive taxation.
A reduction in import quotas will increase the level of protection in the economy.
The imposition of a subsidy will shift the domestic supply curve for a commodity to the right.
The WTO advocates increasing tariffs and other barriers to free trade.
The national defence argument is a political and social argument and has no economic basis.
Dumping refers to the practice of foreign firms selling their procucts below costs on domestic markets.
Subsidies are part of the government's expenditure and are reviewed in the federal budget each year.
Infant industries in Australia are often protected by embargoes.
The main difference between a quota and a tariff is that a quota does not raise any revenue for the government.