Future Business Leader Achievments (FBLA) Economics Practice Exam

The prohibition of exports to another country is called __________.

1. an embargo

2. a boycott

3. a filter

4. a quota

The correct answer is: an embargo

The prohibition of exports to another country is called an embargo. An embargo is a government-imposed restriction that prohibits the movement of goods into or out of a country. This can be a strategic decision often implemented for political reasons, such as to exert economic pressure or to enforce sanctions against a particular nation for its actions or policies. In contrast, a boycott typically refers to the voluntary act of abstaining from buying or using goods and services from a particular country or company, often as a form of protest. A filter does not pertain to economic restrictions; it usually refers to a tool for data processing or management. A quota generally refers to a limit on the quantity of a specific good that can be produced or imported, rather than a prohibition on exports. Therefore, the concept of an embargo specifically fits the definition of prohibiting exports to another country.