Questions
MUF0062 Economics Unit 2 - Semester 2, 2025 Quiz - International Trade.
Single choice
What is free trade?
Options
A.a. A situation in which a government's central bank exchanges currency with another country's central bank
B.b. A policy whereby a government imposes tariffs and quotas on imports, in order to protect local industries
C.c. A policy whereby governments do not attempt to restrict imports from, or exports to, other countries.
D.d. A situation in which consumers obtain free products from foreign nations
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Step-by-Step Analysis
First, let's restate the scenario to be crystal clear about what is being evaluated. The question asks: What is free trade?
Option a: 'a. A situation in which a government's central bank exchanges currency with another country's central bank' This describes currency exchange between central banks, which is about monetary policy and exchange-rate arrangements, not about restrictions on trade in......Login to view full explanationLog in for full answers
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