What is called the trade without restriction of tariffs, quotas, or foreign exchange controls ?

Related Mcqs:

1. Term the interchange of commodities across political frontiers without restriction such as tariffs, quotas, or foreign exchange controls ?

   A. Open trade
   B. Free trade
   C. Open sky trade
   D. Easy trade

2. What is called a group of countries that have removed all tariffs, quotas, and export subsidies on trade among themselves ?

   A. Close-trade zone
   B. Free trade zone
   C. Both of them
   D. None of them

3. For year the U.S government levied quotas on inexpensive oil imported from the Middle East The quotas led to cost increases for U.S consumers totaling $3 billion for oil products. An apparent justification of this policy was that ?

   A. U.S oil companies and workers deserved higher incomes
   B. U.S oil was of superior quality and merited higher prices
   C. one should not be too dependent on foreign suppliers of crucial resources
   D. The U.S government needed the quota revenue to balance its budget

4. Similar to import tariffs import quotas tend to result in ?

   A. higher prices and reduced imports
   B. increased government revenue
   C. increased consumer surplus
   D. decrease producer surplus

5. Which exchange rate system involves a leaning against the wind|| strategy in which short-term fluctuations in exchange rates are reduced without adhering to any particular exchange rate over the long run ?

   A. pegged of fixed exchange rates
   B. adjustable pegged exchange rates
   C. managed floating exchange rates
   D. free floating exchange rates

6. Trade creation will more likely outweigh trade diversion for Country X that forms a customs union if the level of tariffs in Country X prior to the customs union is ________ and the total number of countries forming the customs union is _________?

   A. relatively high; relatively large
   B. relatively high; relatively small
   C. relatively low ; relatively large
   D. relatively low ; relatively small

7. When did World Trade Organization replace General Agreement on Tariffs and Trade (GATT)?

   A. 1st January 1995
   B. 1st January 1998
   C. 1st December 1999
   D. 1st June 2000

   Submitted by: Syed Nizakat Ali Shah

8. Concerning import tariffs of the United States empirical studies tend to conclude that these tariffs are ?

   A. Progressive and thus bear down on the wealthy
   B. regressive and thus bear down on the poor
   C. proportional and thus bear down on all consumers in the same manner
   D. deflationary and thus result in reductions in the price of imports

9. When several countries jointly impose common external tariffs, eliminate tariffs on each other, and eliminate barriers to the movement of labor and capital among themselves, they have formed a/na ?

   A. free trade area
   B. customs union
   C. common market
   D. economic union

10. Restriction on import or export of specified or all goods with a foreign nation by the Government is called ?

    A. Embargo
    B. Contraband
    C. Ban
    D. Restriction