20+ Commercial Policy MCQ’s | (Free Resource) Business Economics

11. The reduction in domestic consumption due to imposition of quotaresults in 
(a) increase in government revenue
(b) increase in consumer’s surplus
(c) loss of social welfare
(d) increase in social welfare

12. A preferential trade area is a trade bloc where 
(a) countries agree to reduce or eliminate tariff barriers on all goods imported from other member nations
(b) countries agree to reduce or eliminate tariff barriers on selected goods imported from other member nations
(c) countries agree to have a common unified tariff against non members
(d) all barriers are eliminated to allow free movement of goods,services, capital and labour

13. A free trade area is a trade bloc where 
(a) countries agree to reduce or eliminate tariff barriers on all goods imported from other member nations
(b) countries agree to reduce or eliminate tariff barriers on selected goods imported from other member nations
(c) countries agree to have a common unified tariff against non members
(d) all barriers are eliminated to allow free movement of goods,services, capital and labour

14. A customs union is a trade bloc where 
(a) countries agree to reduce or eliminate tariff barriers on all goods imported from other member nations
(b) countries agree to reduce or eliminate tariff barriers on selected goods imported from other member nations
(c) countries agree to have a common unified tariff against non members
(d) all barriers are eliminated to allow free movement of goods,services, capital and labour

15. A common or single market is a trade bloc where 
(a) countries agree to reduce or eliminate tariff barriers on all goodsimported from other member nations
(b) countries agree to reduce or eliminate tariff barriers on selectedgoods imported from other member nations
(c) countries agree to have a common unified tariff against nonmembers
(d) all barriers are eliminated to allow free movement of goods,services, capital and labour

16. is one of the disadvantages of international economicintegration.
(a) cross-border investment flows
(b) employment generation
(c) increasing interdependence
(d) conflict resolution

17. The was signed to create the EU in 1993.
(a) Treaty of Maastricht
(b) Treaty of Rome
(c) Treaty of Lisbon
(d) Treaty of London

18. The euro replaced the national currencies of 12 EU member nationsin the year 
(a) 1997
(b) 2002
(c) 2000
(d) 1995

19. The functioning of the EU single market in governed by 
(a) Treaty of Rome
(b) Treaty of Amity and Cooperation
(c) European Financial Stability Facility
(d) Treaty of the Functioning of European Union

20. The Eurozone crisis was essentially a crisis.
(a) Immigration
(b) Food
(c) Sovereign debt
(d) Political

Answers: 11)loss of social welfare 12)countries agree to reduce or eliminate tariff barriers on selected goods imported from other member nations 13)countries agree to reduce or eliminate tariff barriers on all goods imported from other member nations 14)countries agree to have a common unified tariff against non members 15)all barriers are eliminated to allow free movement of goods,services, capital and labour 16)increasing interdependence 17)Treaty of Maastricht 18)2002 19)Treaty of the Functioning of European Union 20)Sovereign debt