1.What protects U.S. producers from the competition with foreign producers who produce cheap goods?
A. Free trade
B. Inflations
C. Tariffs
D. NAFTA
What do you think? If you aren't sure what these terms mean, look in your text materials or look them up. We'll be glad to check your answer.
The correct answer is C. Tariffs. Tariffs are taxes imposed on imported goods, which raise the price of those goods and make them less competitive compared to domestic products. This protectionist measure helps shield U.S. producers from competition with foreign producers who produce cheap goods.
To get the answer to this question, you could follow these steps:
1. Understand the concept of protecting domestic producers from foreign competition.
2. Identify the various options given in the question: free trade, inflations, tariffs, and NAFTA.
3. Evaluate each option to determine which one would protect U.S. producers from competition with foreign producers who produce cheap goods.
4. Determine that tariffs are the most appropriate option, as they directly tax imported goods and raise their prices, making them less competitive.