18 Subsidies are an example of a trade barrier used for protection True False QUESTION 19 An agreement to eliminate trade barriers between Canada, Mexico, and USA is CURRENTLY called: A. NAFTA B. GATT C. USMCA D. USCA QUESTION 20 Which has more to do with opportunity cost? A. Comparative Advantage B. Absolute Advantage C. Quotas D. None of the above QUESTION 21 A limit on the number of cars that can be brought into the USA economy is A. a tarriff B. a subsidy C. a quota D. none of the above QUESTION 22 In the short-run, tariffs and quotas help protect A. Foreign producers B. domestic employment C. Consumer choice D. None of the above QUESTION 23 Countries usually impose restrictions on free foreign trade to... A. Protect foreign producers B. Protect foreign consumers C. Protect domestic consumers D. Protect domestic producers QUESTION 24 If Brazil has a comparative advantage in producing coffee and trade in coffee is allowed, A. Brazil will become an importer of coffee B. Brazil will become an exporter of coffee C. Brazil will become an importer and exporter of coffee D. none of the above QUESTION 25 A tariff imposed by the USA government will A. Increase the quantity of imports and raise domestic price B. decrease the quantity of imports and raise domestic price C. Increase the quantity of imports and lower domestic price D. decrease the quantity of imports and lower domestic price Answe