Why countries trade, and what tariffs, quotas and embargoes do

Grade 7 Social Studies Worksheet

Circle the best answer.

1. Read this first

   Use this

   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.

2. 1.

   Use card A. How much tariff is added to the foreign bicycle, Ari asks?

   • 120 coins
   • 15 coins
   • 20 coins
   • 2 coins
3. 2.

   Use card A. A shopper wants the cheaper bicycle after the tariff. Which is cheaper, and by how much, Bo asks?

   • The foreign bicycle, by 15 coins
   • The foreign bicycle, by 5 coins
   • The home bicycle, by 15 coins
   • The home bicycle, by 5 coins
4. 3.

   Which chain does card A support, Esme asks?

   • The tariff lowers the foreign price, so shoppers buy more foreign bicycles
   • The tariff raises the foreign price, so the government earns coins from home bicycles
   • The tariff raises the foreign price, so home makers lower their price to 100
   • The tariff raises the foreign price, so shoppers may buy the home bicycle, which helps home makers
5. 4.

   A student says, "Card A shows a tariff always helps a country." How strong is that claim, Kira asks?

   • Weak: card A shows home makers gaining and some shoppers paying more
   • Strong: the home bicycle is cheaper than the foreign one, so each shopper gains
   • Weak: invented numbers cannot show how a tariff works
   • Strong: card A says the government collects 120 coins on each bicycle
6. 5.

   Card B says other countries raised their own tariffs. What chain does that suggest, Milo asks?

   • A tariff in 1930 caused the Great Depression, which started the other tariffs
   • A tariff can bring tariffs in return, which can hurt exporters
   • A tariff ends trade, so exporters in the first country sell more at home
   • A tariff makes other countries drop theirs, which helps the first country's exporters
7. 6.

   Who favored the Corn Laws, and why, Noah asks?

   • Farm workers, because the laws raised their wages directly
   • Landowners, because they wanted foreign grain to flood the market
   • Landowners, because the laws kept grain prices up for sellers
   • Factory owners, because the laws made bread cheaper for their workers
8. 7.

   The Corn Laws ran from 1815 to 1846. For about how many years did they last, Pia asks?

   • 41 years
   • 46 years
   • 31 years
   • 3,661 years
9. 8.

   Cards B and C are about different times. What do they show together, Ren asks?

   • Nothing, because the two cases are too far apart in time to compare
   • Tariffs often help some groups and hurt others, and people disagree
   • Tariffs fail in the end, because both cards end with the tariffs ended
   • Both tariffs were ended after other countries raised tariffs
10. 9.

    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 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 foreign bicycles no longer cost 120 coins
    • It shows the tariff was good for the country as a whole
11. 10.

    A student says, "Card B proves the Smoot-Hawley Tariff caused the Great Depression." How strong is that claim, Zee asks?

    • Weak: a tariff cannot affect trade or jobs in any way
    • Weak: card B says economists debate how much it changed the Depression
    • Strong: card B says more than 1,000 economists blamed the tariff for the Depression
    • Strong: other countries raised tariffs, so the tariff caused the Depression