16
QuizMultiple Choice

Trade and Development — Test

Question 16 • Economics and Personal Finance

The primary benefit of a Free Trade Agreement is that they

Answer
A
allow countries to more easily buy what they do not produce.
B
can fund international finance projects.
C
have fewer economic restrictions than trade organizations.
D
allow countries to charge high tariffs on imports and exports.

Explanation

A free trade agreement reduces barriers such as tariffs and quotas between participating countries, making it easier for them to trade goods and services. This lets countries more easily buy products they do not produce themselves. High tariffs would restrict trade, not promote it.

AI-written and checked against the verified answer.

Previous
Next