Which of the following options accurately compares and contrasts different types of trade barriers, such as tariffs, quotas, and embargoes?

Question

(1 point)
Responses

Tariffs and quotas both restrict the quantity of imports, while embargoes are taxes imposed on exports, leading to decreased international trade.

Tariffs are government-imposed limits on the quantity of imports, while quotas are taxes on exports, and embargoes involve voluntary agreements to limit trade.

Tariffs are taxes on imports, quotas are restrictions on the quantity of imports, and embargoes involve a complete prohibition of trade with a specific country.

Tariffs, quotas, and embargoes are interchangeable terms that refer to any form of government intervention in international trade to promote economic growth.

Answer 1

The most accurate option that compares and contrasts different types of trade barriers is:

Tariffs are taxes on imports, quotas are restrictions on the quantity of imports, and embargoes involve a complete prohibition of trade with a specific country.

This option correctly defines each type of trade barrier and highlights their differences.