Trade Barriers

Question 1

How are subsidies similar to tariffs?

Revolt · Accepted Answer

Both allow domestic goods to compete against foreign goods.

Question 2

Tariffs and subsidies are both examples of

Revolt · Accepted Answer

incentives—one positive and one negative.

Question 3

How do quotas help domestic producers?

Revolt · Accepted Answer

Quotas facilitate the sale of more domestic goods.

Question 4

Which best describes the standards required of foreign producers?

Revolt · Accepted Answer

Foreign producers must meet the same standards as domestic producers.

Question 5

Why do countries provide financial incentives?

Revolt · Accepted Answer

Financial incentives act as trade barriers.

Question 6

Which of these is a positive incentive for domestic producers?

Revolt · Accepted Answer

a subsidy on domestic oranges

Question 7

Which group directly benefits from subsidies?

Revolt · Accepted Answer

producers

Question 8

What is the government’s aim in setting quotas?

Revolt · Accepted Answer

to increase sales of domestic goods

Question 9

What is the purpose of quotas?

Revolt · Accepted Answer

to limit how much of a good can be imported

Question 10

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

Trade Barriers Answers

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