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Economics-Trade Barriers

India Sanchez avatar India Sanchez
25 July 2022
4.7 (114 reviews)
10 test answers

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question
What is the purpose of quotas?
answer
to limit how much of a good can be imported
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Tariffs and subsidies are both types of
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incentives.
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What is the government's aim in setting quotas?
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to increase sales of domestic goods
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Which best describes what a subsidy does?
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It keeps the price of domestic goods relatively low.
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How are subsidies similar to tariffs?
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NOT Both are types of taxes.
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How do quotas help domestic producers?
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Quotas facilitate the sale of more domestic goods.
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Which type of incentive makes it more profitable to follow a certain course of action?
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Positive
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Customs duty on cars produced overseas is a type of
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NOT negative incentive and subsidy.
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How do embargoes most negatively affect a domestic market?
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by depriving domestic producers of needed goods, restricting their ability to trade
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Which best describe why countries establish limits on trade? Check all that apply.
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NOT 1,4,5 -to force domestic industries to compete -to raise the price of foreign goods -to punish other countries