9
QuizMultiple Choice

Trade Agreements

Question 9 • * HSA 26-27 US Government

How are subsidies similar to tariffs?

Answer
A
Both are types of taxes.
B
Both aim to lower the price of domestic goods.
C
Both are types of tax breaks and financial assistance.
D
Both allow domestic goods to compete against foreign goods.

Explanation

Tariffs make imported goods more expensive, while subsidies give domestic producers financial support that can lower their costs. Although they work differently, both can help domestic goods compete against foreign goods. Choice D describes this shared purpose.

AI-written and checked against the verified answer.

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