Trade Barriers

Question 1

Tariffs and subsidies are both examples of

Revolt · Accepted Answer

incentives—one positive and one negative.

Question 2

Which best describes what a subsidy does?

Revolt · Accepted Answer

It keeps the price of domestic goods relatively low.

Question 3

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

Revolt · Accepted Answer

Cuba

Question 4

Which group directly benefits from subsidies?

Revolt · Accepted Answer

producers

Question 5

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

Question 6

How are subsidies similar to tariffs?

Revolt · Accepted Answer

Both allow domestic goods to compete against foreign goods.

Question 7

Which best describes how standards help domestic producers?

Revolt · Accepted Answer

Standards require goods to meet basic requirements.

Question 8

What is the purpose of quotas?

Revolt · Accepted Answer

to limit how much of a good can be imported

Question 9

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

Revolt · Accepted Answer

embargoes

Trade Barriers Answers