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QUESTION IMAGE

tariffs and subsidies are both types of monetary restrictions for the d…

Question

tariffs and subsidies are both types of
monetary restrictions for the domestic producer.
economic benefits for the consumer.
economic benefits for the international producer
positive and negative incentives.

Explanation:

Brief Explanations
  • Tariffs are taxes on imported goods (a negative incentive for international producers, positive for domestic producers). Subsidies are financial aids to domestic producers (a positive incentive). So they are positive (subsidies) and negative (tariffs) incentives.
  • "Monetary restrictions for domestic producer" is wrong (subsidies help, not restrict). "Economic benefits for consumer" is wrong (tariffs raise prices for consumers, subsidies may not directly benefit consumers). "Economic benefits for international producer" is wrong (tariffs hurt international producers).

Answer:

D. positive and negative incentives (assuming the last option is D; if the options are labeled differently, adjust the label but the text is "positive and negative incentives")