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Trade Barriers Answers

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1
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Which best describes how standards help domestic producers?

A
Standards require goods to meet basic requirements.
B
Standards provide financial support for producers.
C
Standards restrict the import of cheap goods.
D
Standards offer incentives to ensure high quality.
2
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Tariffs and subsidies are both examples of

A
monetary restrictions for the domestic producer.
B
economic benefits for the consumer.
C
economic benefits for the international producer.
D
incentives—one positive and one negative.
3

What is the government’s aim in setting quotas?

A
to create more competition in the market
B
to increase sales of domestic goods
C
to keep tariffs high
D
to limit export of domestic goods
4

What do quotas and embargoes have in common?

A
They both tend to raise prices.
B
They both affect imports from certain countries.
C
They both set limits on imported goods.
D
They both frequently result in domestic shortages.
5

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

A
positive incentive and subsidy.
B
negative incentive and subsidy.
C
positive incentive and tariff.
D
negative incentive and tariff.
6

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

A
to force domestic industries to sell higher quality goods
B
to restrict foreign influence in a sector
C
to restrict importation of a foreign good
D
to lower the price of foreign goods
E
to punish other countries
7

Which type of incentive makes it more profitable to follow a certain course of action?

Answer not available
8

What is the purpose of quotas?

A
to ban all imports from a country
B
to ensure specific goods are not available to consumers
C
to limit how much of a good can be imported
D
to keep prices on domestic goods low
9

Which best describes the standards required of foreign producers?

A
Foreign producers have more stringent standards than domestic producers.
B
Foreign producers must meet the same standards as domestic producers.
C
Foreign producers must meet specific standards based on their origin.
D
Foreign producers do not use standards that harm consumers.
10

How do embargoes most negatively affect a domestic market?

A
by depriving domestic producers of needed goods, restricting their ability to trade
B
by helping international producers fill a market void, decreasing domestic trade
C
by preventing domestic producers from trading needed goods with all countries
D
by encouraging international producers to sell new goods for lower prices than domestic goods

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