Trade and Economic Policies Quiz

What is the outcome when exports exceed imports?

• Trade deficit

• Trade surplus

• Economic recession

• Market failure

Which economic policy promotes fewer restrictions on trade?

• Protectionism

• Economic Liberalization

• Trade barriers

• Import substitution

When does protectionism typically occur?

• When politics drives economic environment

• When there's a trade surplus

• During economic liberalization

• During free trade agreements

What is a consequence of a trade deficit?

• Supportive for economy

• Increased exports

• Non-supportive to economy

• Economic liberalization

The LPG Model was introduced in which year?

• 1989

• 1990

• 1991

• 1992

What is NOT a barrier used in protectionism?

• Tariffs

• Non-tariff barriers

• Free trade agreements

• Import quotas

Comparative advantage is associated with:

• Trade barriers

• Trade deficit

• Free trade

• Protectionism

Which of the following is a positive outcome of trade surplus?

• Increased political control

• Supportive for economy

• Trade restrictions

• Decreased exports

What happens when politics dominates over economy in trade?

• Increased free trade

• Economic liberalization

• Protectionism

• Trade surplus

Which of the following is included in preferential trade arrangements?

• Maximum tariffs

• Trade barriers

• Reduced trade restrictions

• Increased protectionism