QUESTION IMAGE
Question
how do embargos most negatively affect a domestic market?
by encouraging international producers to sell new goods for lower prices than domestic goods
by helping international producers fill a market void, decreasing domestic trade
by preventing domestic producers from trading needed goods with all countries
by depriving domestic producers of needed goods, restricting their ability to trade
Embargoes restrict trade, so they prevent domestic producers from trading (importing) needed goods from all countries. The first option is about depriving of needed goods but wording is less accurate. The third and fourth options suggest positive or different impacts, which don't fit "most negatively affect". The second option correctly explains embargoes' effect on domestic producers' access to goods from all countries.
Snap & solve any problem in the app
Get step-by-step solutions on Sovi AI
Photo-based solutions with guided steps
Explore more problems and detailed explanations
The option "by preventing domestic producers from trading needed goods with all countries" (the second rectangular option from the top)