Trade Agreements

Question 1

Tariffs and subsidies are both examples of

Revolt · Accepted Answer

incentives—one positive and one negative.

Question 2

Which group directly benefits from subsidies?

Revolt · Accepted Answer

producers

Question 3

Which type of trade barrier is explicitly used for political purposes?

Revolt · Accepted Answer

embargoes

Question 4

What is the purpose of quotas?

Revolt · Accepted Answer

to limit how much of a good can be imported

Question 5

Often duties and taxes are imposed on cars that are imported from other countries. What types of incentives are these duties and taxes?

Revolt · Accepted Answer

negative incentive and tariff.

Question 6

Which of these is a positive incentive for domestic producers?

Revolt · Accepted Answer

a subsidy on domestic oranges

Question 7

Which best describes why countries establish limits on international trade? Choose three answers.to force domestic industries to sell higher quality goodsto restrict foreign influence in a sectorto restrict importation of a foreign goodto lower the price of foreign goodsto punish other countries

Revolt · Accepted Answer

to restrict foreign influence in a sector; to restrict importation of a foreign good; to punish other countries

Question 8

How are subsidies similar to tariffs?

Revolt · Accepted Answer

Both allow domestic goods to compete against foreign goods.

Question 9

How do embargoes most negatively affect a domestic market?

Revolt · Accepted Answer

by depriving domestic producers of needed goods, restricting their ability to trade

Trade Agreements Answers

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