Trade Barriers

Question 1

What is the government’s aim in setting quotas?

Revolt · Accepted Answer

to increase sales of domestic goods

Question 2

Which of these is a positive incentive for domestic producers?

Revolt · Accepted Answer

a subsidy on domestic oranges

Question 3

Which best describes what a subsidy does?

Revolt · Accepted Answer

It keeps the price of domestic goods relatively low.

Question 4

On which country has the United States imposed an embargo since 1960?

Revolt · Accepted Answer

Cuba

Question 5

How are subsidies similar to tariffs?

Revolt · Accepted Answer

Both allow domestic goods to compete against foreign goods.

Question 6

importeddomestic

Revolt · Accepted Answer

imported

Question 7

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

Question 8

How do quotas help domestic producers?

Revolt · Accepted Answer

Quotas facilitate the sale of more domestic goods.

Question 9

Tariffs and subsidies are both examples of

Revolt · Accepted Answer

incentives—one positive and one negative.

Question 10

What do quotas and embargoes have in common?

Revolt · Accepted Answer

They both set limits on imported goods.

Trade Barriers Answers