6
QuizMultiple Choice

Aggregate Economic Behavior and the Global Economy — Test

Question 6 • Economics

What is the most common reason why countries create trade agreements?

Answer
A
to create free trade
B
to limit imports
C
to establish quotas
D
to decrease trade

Explanation

Countries most commonly create trade agreements to make trade between them easier by reducing or removing barriers such as tariffs. This encourages the exchange of goods and services, creating freer trade. So the correct choice is “to create free trade.”

AI-written and checked against the verified answer.

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