{"id":17334,"date":"2022-04-02T16:21:01","date_gmt":"2022-04-02T10:51:01","guid":{"rendered":"https:\/\/scholarsclasses.com\/blog\/?p=17334"},"modified":"2026-02-09T21:29:43","modified_gmt":"2026-02-09T15:59:43","slug":"commercial-policy-mcqs","status":"publish","type":"post","link":"https:\/\/scholarsclasses.com\/blog\/commercial-policy-mcqs\/","title":{"rendered":"20+ Commercial Policy MCQ&#8217;s | (Free Resource) Business Economics"},"content":{"rendered":"\n<h2 class=\"wp-block-heading has-text-align-center\">Commercial Policy MCQ<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/business-economics-mcq\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/business-economics-mcq\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>MCQs on other topics of Business Economics <\/strong><\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.icsi.edu\/media\/webmodules\/modelquestionpaper\/CMA-MCQ%20100.pdf\" data-type=\"URL\" data-id=\"https:\/\/www.icsi.edu\/media\/webmodules\/modelquestionpaper\/CMA-MCQ%20100.pdf\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Cost Accounting MCQs pdf <\/strong><\/a><\/li>\n<\/ul>\n\n\n\n<p><strong>1. Which one of the following is not an objective of commercial trade policy?<br><\/strong>(a) To preserve foreign exchange reserves<br>(b) To determine the rate of interest<br>(c) To protect domestic industries from foreign competition<br>(d) To maintain favourable balance of payments<\/p>\n\n\n\n<p><strong>2. Which one of the following is an argument for free trade?<br><\/strong>(a) Protects domestic industries<br>(b) Promotes self sufficiency<br>(c) Helps diversification of industries<br>(d) Promotes efficient allocation of world resources<\/p>\n\n\n\n<p><strong>3. Which of the following is an argument against the policy of free trade?<br><\/strong>(a) Does not always benefit less developed countries<br>(b) Protects inefficient industries<br>(c) Causes unemployment in the export sector<br>(d) Harms domestic consumers<\/p>\n\n\n\n<p><strong>4. Protectionist policy&nbsp;<br><\/strong>(a) Encourages international specialization<br>(b) Promotes global production<br>(c) Helps prevent dumping<br>(d) Reduces government intervention in trade<\/p>\n\n\n\n<p><strong>5. Tariff rate quotas are&nbsp;<br><\/strong>(a) combination of tariffs and quotas<br>(b) based on the value of the traded commodity only<br>(c) based on the quantity or volume of the quantity only<br>(d) low tariff rate on an initial quantity of import within the quotalimit and very high tariff rate on imports above the initial amount<\/p>\n\n\n\n<p><strong>6. A tariff expressed as either a specific or an ad valorem rate, whichever is higher, is known as&nbsp;<br><\/strong>(a) General tariff <br>(b) Mixed tariff<br>(c) Compound tariff <br>(d) Countervailing tariff<\/p>\n\n\n\n<p><strong>7. Countervailing tariffs specifically aim to&nbsp;<br><\/strong>(a) give preference to imports from a customs union<br>(b) retaliate to a tariff imposed by a trading partner<br>(c) neutralize the effects of subsides given to the producers in the exporting countries<br>(d) counter dumping by other countries<\/p>\n\n\n\n<p><strong>8. A system that makes it mandatory for domestic producers to use someproportion of domestic raw material is known as&nbsp;<br><\/strong>(a) Mixing quota <br>(b) Global quota<br>(c) Allocated quota <br>(d) Import licensing<\/p>\n\n\n\n<p><strong>9. Which of the following is not a NTB?<br><\/strong>(a) Voluntary export restrictions<br>(b) Local content requirement<br>(c) Administrative barriers<br>(d) Tariff rate quotas<\/p>\n\n\n\n<p><strong>10. Which one of the following NTBs prevents free movement of capital between countries?<br><\/strong>(a) Preferential government procurement<br>(b) Exchange controls<br>(c) Domestic subsidies<br>(d) Local content requirement<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answers:<\/strong> <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">1)To determine the rate of interest  2)Promotes efficient allocation of world resources  3)Does not always benefit less developed countries  4)Helps prevent dumping<\/mark> <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\"> 5)low tariff rate on an initial quantity of import within the quota limit and very high tariff rate on imports above the initial amount  6)Mixed tariff  7)neutralize the effects of subsides given to the producers in the exporting countries  8)Mixing quota  9)Tariff rate quotas  10)Exchange controls<\/mark><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" data-src=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Commercial-Policy-MCQ-1024x576.webp\" alt=\"Commercial Policy MCQ\" class=\"wp-image-17354 lazyload\" title=\"\" data-srcset=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Commercial-Policy-MCQ-1024x576.webp 1024w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Commercial-Policy-MCQ-300x169.webp 300w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Commercial-Policy-MCQ-768x432.webp 768w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Commercial-Policy-MCQ-1536x864.webp 1536w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Commercial-Policy-MCQ-640x360.webp 640w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Commercial-Policy-MCQ.webp 1920w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/576;\" \/><figcaption class=\"wp-element-caption\">Commercial Policy MCQ<\/figcaption><\/figure>\n\n\n\n<p><strong>11. The reduction in domestic consumption due to imposition of quotaresults in&nbsp;<br><\/strong>(a) increase in government revenue<br>(b) increase in consumer\u2019s surplus<br>(c) loss of social welfare<br>(d) increase in social welfare<\/p>\n\n\n\n<p><strong>12. A preferential trade area is a trade bloc where&nbsp;<br><\/strong>(a) countries agree to reduce or eliminate tariff barriers on all goods imported from other member nations<br>(b) countries agree to reduce or eliminate tariff barriers on selected goods imported from other member nations<br>(c) countries agree to have a common unified tariff against non\u0002 members<br>(d) all barriers are eliminated to allow free movement of goods,services, capital and labour<\/p>\n\n\n\n<p><strong>13. A free trade area is a trade bloc where&nbsp;<br><\/strong>(a) countries agree to reduce or eliminate tariff barriers on all goods imported from other member nations<br>(b) countries agree to reduce or eliminate tariff barriers on selected goods imported from other member nations<br>(c) countries agree to have a common unified tariff against non\u0002 members<br>(d) all barriers are eliminated to allow free movement of goods,services, capital and labour<\/p>\n\n\n\n<p><strong>14. A customs union is a trade bloc where&nbsp;<br><\/strong>(a) countries agree to reduce or eliminate tariff barriers on all goods imported from other member nations<br>(b) countries agree to reduce or eliminate tariff barriers on selected goods imported from other member nations<br>(c) countries agree to have a common unified tariff against non\u0002 members<br>(d) all barriers are eliminated to allow free movement of goods,services, capital and labour<\/p>\n\n\n\n<p><strong>15. A common or single market is a trade bloc where&nbsp;<br><\/strong>(a) countries agree to reduce or eliminate tariff barriers on all goodsimported from other member nations<br>(b) countries agree to reduce or eliminate tariff barriers on selectedgoods imported from other member nations<br>(c) countries agree to have a common unified tariff against non\u0002members<br>(d) all barriers are eliminated to allow free movement of goods,services, capital and labour<\/p>\n\n\n\n<p><strong>16. is one of the disadvantages of international economicintegration.<br><\/strong>(a) cross-border investment flows<br>(b) employment generation<br>(c) increasing interdependence<br>(d) conflict resolution<\/p>\n\n\n\n<p><strong>17. The was signed to create the EU in 1993.<br><\/strong>(a) Treaty of Maastricht <br>(b) Treaty of Rome<br>(c) Treaty of Lisbon <br>(d) Treaty of London<\/p>\n\n\n\n<p><strong>18. The euro replaced the national currencies of 12 EU member nationsin the year&nbsp;<br><\/strong>(a) 1997 <br>(b) 2002<br>(c) 2000 <br>(d) 1995<\/p>\n\n\n\n<p><strong>19. The functioning of the EU single market in governed by&nbsp;<br><\/strong>(a) Treaty of Rome<br>(b) Treaty of Amity and Cooperation<br>(c) European Financial Stability Facility<br>(d) Treaty of the Functioning of European Union<\/p>\n\n\n\n<p><strong>20. The Eurozone crisis was essentially a crisis.<br><\/strong>(a) Immigration <br>(b) Food<br>(c) Sovereign debt <br>(d) Political<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answers:<\/strong> <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">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\u0002 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<\/mark><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>21. ASEAN was formed in<br><\/strong>(a) 1967 <br>(b) 1945<br>(c) 1999 <br>(d) 2000<\/p>\n\n\n\n<p><strong>22. The was established in 2015 to bring about economic integrationto create a single market in ASEAN.<br><\/strong>(a) ATIGA <br>(b) AEC<br>(c) AFTA <br>(d) ABIF<\/p>\n\n\n\n<p><strong>23. The aim of ABIF is to establish&nbsp;<br><\/strong>(a) Banking integration in ASEAN<br>(b) Food security in ASEAN<br>(c) Free labour market in ASEAN<br>(d) Customs union in ASEAN<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answer:<\/strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\"><strong> <\/strong>21)1967  22)AEC  23)Banking integration in ASEAN<\/mark><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/youtu.be\/zjZcQoqGslA\" data-type=\"link\" data-id=\"https:\/\/youtu.be\/zjZcQoqGslA\" target=\"_blank\" rel=\"noopener\">Video<\/a> lectures on Commercial Policy MCQ&#8217;s.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":17354,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,7],"tags":[4790],"class_list":["post-17334","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bcom","category-degree-college","tag-commercial-policy-mcq"],"_links":{"self":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/17334","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/comments?post=17334"}],"version-history":[{"count":7,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/17334\/revisions"}],"predecessor-version":[{"id":41942,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/17334\/revisions\/41942"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media\/17354"}],"wp:attachment":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media?parent=17334"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/categories?post=17334"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/tags?post=17334"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}