10
QuizMultiple Choice

The Global Economy — Test

Question 10 • CMS 2026-2027 Economics and Personal Finance INITIAL CREDIT

Tariffs and subsidies are both types of

Answer
A
economic benefits for the international producer.
B
positive and negative incentives.
C
monetary restrictions for the domestic producer.
D
economic benefits for the consumer.

Explanation

A subsidy provides financial support that encourages a business or industry, so it acts as a positive incentive. A tariff raises the cost of imported goods, discouraging imports, so it acts as a negative incentive. Therefore, tariffs and subsidies are positive and negative incentives.

AI-written and checked against the verified answer.

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