Why countries trade, and what tariffs, quotas and embargoes do
Grade 7 Social Studies Worksheet

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Tariffs, past and imagined (cards A to C; summaries in our words). Card A, an invented example: a bicycle made abroad costs 100 coins at the border. A tariff of 20 percent is added, so shoppers pay 120 coins for it. A bicycle made at home costs 115 coins. Card B, the Smoot-Hawley Tariff of 1930 in the United States: it raised tariffs on more than 20,000 imported goods. More than 1,000 economists signed a letter urging the president not to sign it. Other countries raised their own tariffs in response. Economists debate how much the tariff changed the Great Depression. Card C, the Corn Laws in Britain, 1815 to 1846: laws that kept foreign grain out unless grain prices at home were high. Landowners who sold grain favored them; factory owners and many workers, who wanted cheaper bread, opposed them. Parliament ended the laws in 1846.
Use card A. How much tariff is added to the foreign bicycle, Ari asks?
- 120 coins
- 15 coins
- 20 coins
- 2 coins
Use card A. A shopper wants the cheaper bicycle after the tariff. Which is cheaper, and by how much, Bo asks?
- The home bicycle, by 5 coins
- The foreign bicycle, by 15 coins
- The home bicycle, by 15 coins
- The foreign bicycle, by 5 coins
A student says, "Card A shows a tariff always helps a country." How strong is that claim, Kira asks?
- Strong: the home bicycle is cheaper than the foreign one, so each shopper gains
- Strong: card A says the government collects 120 coins on each bicycle
- Weak: invented numbers cannot show how a tariff works
- Weak: card A shows home makers gaining and some shoppers paying more
More than 1,000 economists urged the president not to sign the 1930 tariff. What does that show, Luz asks?
- The economists wanted a tariff added to imports of any kind into the country
- The economists proved that the tariff made the Great Depression worse
- Many economists thought the tariff would do more harm than good
- Economists in the country were united against the tariff
Card B says other countries raised their own tariffs. What chain does that suggest, Milo asks?
- A tariff makes other countries drop theirs, which helps the first country's exporters
- A tariff can bring tariffs in return, which can hurt exporters
- A tariff in 1930 caused the Great Depression, which started the other tariffs
- A tariff ends trade, so exporters in the first country sell more at home
Who favored the Corn Laws, and why, Noah asks?
- Factory owners, because the laws made bread cheaper for their workers
- Landowners, because they wanted foreign grain to flood the market
- Landowners, because the laws kept grain prices up for sellers
- Farm workers, because the laws raised their wages directly
The Corn Laws ran from 1815 to 1846. For about how many years did they last, Pia asks?
- 41 years
- 46 years
- 3,661 years
- 31 years
Cards B and C are about different times. What do they show together, Ren asks?
- Both tariffs were ended after other countries raised tariffs
- Tariffs often help some groups and hurt others, and people disagree
- Tariffs fail in the end, because both cards end with the tariffs ended
- Nothing, because the two cases are too far apart in time to compare
A record shows a home bicycle maker hired more workers after the 20 percent tariff. What does it add to card A, Tala asks?
- It shows foreign bicycles no longer cost 120 coins
- It fits the gain for home makers, but shoppers' costs remain to weigh
- It adds nothing, because one maker's hiring cannot be used as evidence
- It shows the tariff was good for the country as a whole
A student says, "Card B proves the Smoot-Hawley Tariff caused the Great Depression." How strong is that claim, Zee asks?
- Strong: other countries raised tariffs, so the tariff caused the Depression
- Weak: card B says economists debate how much it changed the Depression
- Weak: a tariff cannot affect trade or jobs in any way
- Strong: card B says more than 1,000 economists blamed the tariff for the Depression