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An Example of a Negative Incentive Is

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An example of a negative incentive is


Definitions:

Free Trade

The elimination of tariffs, quotas, and other trade barriers between countries to allow for the unrestricted exchange of goods and services.

Autarky Price

The price of goods in a closed economy that does not engage in international trade.

Domestic Supply

The total amount of goods and services produced within a country that is available for purchase.

Domestic Demand

The total demand for goods and services within a country's borders, excluding exports and including imports.

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