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 affect domestic consumers too). Subsidies are financial aids (positive incentive for domestic producers). They are incentives - one (tariff) can be seen as a negative - like making imports costlier to protect domestic, subsidy as positive - aiding domestic producers.
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incentives—one positive and one negative.