Economics Basics Unit Test

Question

11 of 1511 of 15 Items

Question
Which of the following laws is considered a trade barrier?
(1 point)
Responses

A company that produces furniture is shut down
A company that produces furniture is shut down

federal aid given to unemployed workers from a factory
federal aid given to unemployed workers from a factory

paying money to an industry to encourage it to make goods in the country
paying money to an industry to encourage it to make goods in the country

consumers deciding to purchase only locally made goods

Answer 1

The response that best represents a trade barrier is:

paying money to an industry to encourage it to make goods in the country.

This option refers to government subsidies that can protect domestic industries by making it more difficult for foreign competition to enter the market, thus acting as a trade barrier.