Which of the following is a key argument in favor of free trade?
A) Protectionism ensures national industries are protected from foreign competition
B) Free trade allows for the efficient allocation of resources globally
C) Free trade always leads to increased employment in all industries
D) Protectionism boosts consumer choice and lowers prices
Which of the following is considered a barrier to trade in protectionism?
A) Subsidies
B) Lowering tariffs
C) Increased competition
D) Removing quotas
What is the main objective of protectionist policies?
A) To promote international competition
B) To protect domestic industries from foreign competition
C) To encourage global economic growth
D) To reduce tariffs and quotas
Free trade is most likely to:
A) Increase the number of trade restrictions
B) Reduce the cost of goods and services through competition
C) Encourage a country to focus on a narrow range of products
D) Encourage the use of high tariffs to protect domestic industries
Which of the following is NOT typically associated with protectionism?
A) Tariffs
B) Quotas
C) Subsidies to domestic industries
D) Deregulation of markets
One of the disadvantages of protectionism is:
A) Reduced consumer choice
B) Lower production costs
C) Increased competition among domestic firms
D) More investment in foreign markets
Which of the following is a common argument used by opponents of free trade?
A) It promotes economic growth by encouraging global cooperation
B) It leads to job losses in industries that cannot compete with cheaper imports
C) It encourages countries to specialize in the production of their most efficient goods
D) It helps reduce inflation and the cost of living
What is one of the key benefits of protectionist measures like tariffs and quotas?
A) They encourage the efficient allocation of resources
B) They protect infant industries from foreign competition
C) They increase the availability of imported goods
D) They make domestic products more expensive for consumers
Free trade encourages countries to:
A) Limit imports to reduce foreign dependence
B) Specialize in the goods they can produce most efficiently
C) Increase tariffs to protect local businesses
D) Focus only on producing essential goods
A major disadvantage of protectionism for consumers is:
A) Increased prices of goods
B) Increased variety of available products
C) Better access to foreign markets
D) Higher levels of international competition
Which of the following is an example of a non-tariff barrier to trade?
A) Import quotas
B) Sales tax on imported goods
C) Export subsidies
D) Tariffs
Which of the following is a criticism of free trade?
A) It can lead to environmental degradation if regulations are ignored
B) It encourages specialization and maximizes national output
C) It reduces income inequality by providing more job opportunities
D) It eliminates the need for government intervention in markets
Protectionism tends to lead to:
A) Higher competition and lower prices
B) Increased government revenue from tariffs and taxes
C) More efficient global production practices
D) Reduced domestic production of consumer goods
Which of the following is an argument in favor of free trade?
A) It leads to the overproduction of essential goods
B) It encourages competition, leading to innovation and lower prices
C) It leads to monopolies and decreased market diversity
D) It isolates countries from economic problems in other regions
Which policy would most likely be adopted by a government practicing protectionism?
A) Lowering tariffs on imports
B) Offering subsidies to local businesses
C) Promoting international investment
D) Removing quotas on foreign products
A key advantage of free trade for businesses is:
A) Higher costs due to tariffs
B) Greater market access to consumers in other countries
C) Protection from international competitors
D) Decreased supply of foreign goods
Which of the following is an effect of protectionist policies on global trade?
A) Increased global economic efficiency
B) Decreased competition in domestic markets
C) Expansion of international trade relationships
D) Reduction in global trade volumes
Free trade agreements typically:
A) Decrease economic cooperation between nations
B) Set tariffs and quotas to protect domestic industries
C) Eliminate barriers to trade between member countries
D) Discourage competition by limiting market access
One of the disadvantages of free trade is:
A) It can lead to job losses in industries that cannot compete globally
B) It reduces competition, leading to monopolies
C) It increases the cost of living for consumers
D) It makes it harder for countries to access foreign markets
Which of the following is a goal of free trade agreements?
A) To protect domestic markets from foreign products
B) To harmonize economic policies across countries
C) To increase tariffs on imported goods
D) To reduce competition among international firms
What is a likely consequence of the imposition of tariffs in a protectionist system?
A) Increased trade flows between countries
B) Lower consumer prices on foreign goods
C) Reduced supply of imported goods
D) Increased competition among international suppliers
Which of the following countries is known for adopting protectionist trade policies?
A) Japan
B) United States (during certain periods)
C) Germany
D) India (during certain periods)
Free trade proponents argue that:
A) Protectionist policies ensure that all countries benefit equally from trade
B) Lower tariffs lead to higher costs for consumers and businesses
C) Countries can specialize in their comparative advantages, benefiting all nations
D) Trade agreements are less effective when countries maintain protectionist policies
Which of the following is an effect of protectionism on the economy of a country?
A) Increased international competition
B) Higher domestic prices due to reduced competition
C) Reduced revenue from government tariffs
D) Increased imports of foreign goods
One of the potential outcomes of protectionism is:
A) Lower tariffs and fewer barriers to trade
B) Lower prices for consumers due to increased competition
C) A reduction in consumer choice and higher prices
D) A more open and interconnected global economy
In free trade, goods flow across borders:
A) With barriers such as tariffs and quotas
B) Without restrictions on their movement
C) Only when they have been locally produced
D) Under strict government control
