QUESTION IMAGE
Question
tariffs and subsidies are both examples of
monetary restrictions for the domestic producer.
economic benefits for the consumer.
economic benefits for the international producer.
incentives—one positive and one negative.
Tariffs are taxes on imports (negative incentive for foreign producers, can protect domestic ones). Subsidies are financial aids (positive incentive for domestic producers). They are both government - imposed economic incentives. Monetary restrictions are more about money supply (not relevant here). Tariffs usually hurt consumers (higher prices), and they don't benefit international producers (tariffs make their goods more expensive).
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incentives—one positive and one negative.