8
lesson pretestMultiple Choice

Pretest

Question 8 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY

How do embargoes most negatively affect a domestic market?

Answer
A
by helping international producers fill a market void, decreasing domestic trade
B
by preventing domestic producers from trading needed goods with all countries
C
by depriving domestic producers of needed goods, restricting their ability to trade
D
by encouraging international producers to sell new goods for lower prices than domestic goods

Explanation

An embargo restricts trade with a particular country, so domestic producers may lose access to goods or materials they need from that trading partner. Without those inputs, producers may be less able to make and trade their own goods. Choice C describes this effect; an embargo does not necessarily prevent trade with all countries, as choice A claims.

AI-written and checked against the verified answer.

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