Question

Which of the following is one way in which an embargo differs from a tariff? (1 point) Responses It allows for free trade of goods. It allows for free trade of goods. It limits the taxes placed on foreign goods. It limits the taxes placed on foreign goods. It bans all importation of foreign goods. It bans all importation of foreign goods. It increases the price of foreign goods.

Answer 1

The correct response is: It bans all importation of foreign goods.

An embargo is a government order that restricts or prohibits trade with a specific country or the exchange of specific goods, whereas a tariff is a tax imposed on imported goods to increase their price and reduce their attractiveness compared to domestic products.