Trade Barriers

Question 1

Which group directly benefits from subsidies?

Revolt · Accepted Answer

producers

Question 2

Which best describes what a subsidy does?

Revolt · Accepted Answer

It keeps the price of domestic goods relatively low.

Question 3

How are subsidies similar to tariffs?

Revolt · Accepted Answer

Both allow domestic goods to compete against foreign goods.

Question 4

What is the purpose of quotas?

Revolt · Accepted Answer

to limit how much of a good can be imported

Question 5

Which of these is a positive incentive for domestic producers?

Revolt · Accepted Answer

a subsidy on domestic oranges

Question 6

How do quotas help domestic producers?

Revolt · Accepted Answer

Quotas facilitate the sale of more domestic goods.

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

Trade Barriers Answers

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