Question

Which statement about trade barriers is correct?

Quotas and embargoes are imposed to encourage international trade.


Tariffs are imposed to encourage consumers to purchase domestic goods.


Quotas are imposed to encourage producers to improve the quality of goods.


Tariffs and embargoes are imposed to encourage consumers to purchase more goods.

Answer 1

"Tariffs are imposed to encourage consumers to purchase domestic goods."

Explanation: Tariffs are taxes on imports that raise the price of foreign goods, making domestic products relatively cheaper and more attractive to consumers. Quotas and embargoes restrict or ban imports rather than encouraging international trade.