Multiple Choice
In the context of public goods, what is the likely effect on the provision of public goods when a city council switches from at-large elections to single-member districts?
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8. The Types of Goods
Public Goods: Demand Curve and Optimal Quantity
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Which of the following is an example of a natural trade barrier?
A
Import tariffs imposed by governments
B
Geographic distance between countries
C
Subsidies for domestic producers
D
Quotas on imported goods
Verified step by step guidance1
Understand the concept of trade barriers: Trade barriers are restrictions or obstacles that countries use to control the amount and type of goods that can be imported or exported.
Identify the types of trade barriers: These can be natural (arising from geography or other inherent factors) or artificial (imposed by governments, such as tariffs, quotas, and subsidies).
Analyze each option: Import tariffs, subsidies, and quotas are all government-imposed restrictions, so they are artificial trade barriers.
Recognize that geographic distance is not imposed by governments but is a natural factor that can increase transportation costs and reduce trade volume, making it a natural trade barrier.
Conclude that the geographic distance between countries is an example of a natural trade barrier because it is an inherent obstacle to trade, unlike tariffs, subsidies, or quotas.
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