Question

Trade barriers are designed to protect producers in the country from being put out of business by foreign producers with lower prices & to prevent trade deficits from happening. (1 point) Responses True True False

Answer 1

[AI-generated answer — Bot GPT 3.5]

True

Answer 2

[AI-generated answer — Step-by-Step Bot]

False

Answer 3

[AI-generated answer — Explain Bot]

To determine whether the statement is true or false, we need to analyze each component separately.

First, trade barriers, such as tariffs, quotas, and subsidies, can indeed be designed to protect domestic producers from competition with foreign producers. By imposing trade barriers, domestic producers are given an advantage in terms of price competitiveness, as foreign products become more expensive or limited in availability.

Second, trade barriers can be used to prevent trade deficits. A trade deficit occurs when a country imports more than it exports, resulting in a negative balance of trade. By imposing barriers, a country can restrict imports and protect its domestic industries. This can help reduce the trade deficit by encouraging domestic production and consumption, therefore boosting exports.

Based on these explanations, the statement "Trade barriers are designed to protect producers in the country from being put out of business by foreign producers with lower prices & to prevent trade deficits from happening" is true.