Economics Practice Quiz 63

Q1.What term is used to describe the act of removing barriers or restrictions set by the government on foreign trade and investment?

A. Globalisation B. Privatisation C. Liberalisation D. Nationalisation

Q2.After liberalisation of trade, what freedom do businesses gain regarding import and export decisions?

A. They must seek government approval for every transaction. B. They are allowed to make decisions freely about what they wish to import or export. C. They are restricted to importing only essential items. D. They are required to pay higher taxes on all foreign trade.

Q3.Besides taxes, what other type of trade barrier is mentioned in the 'LET’S WORK THESE OUT' section that limits the number of goods imported?

A. Subsidies B. Quotas C. Tariffs D. Embargoes

Q4.What is the primary function of the World Trade Organisation (WTO) as stated in the provided text?

A. To provide financial aid to developing countries. B. To establish rules regarding international trade and ensure their obedience. C. To promote cultural exchange between member nations. D. To resolve political disputes between countries.

Q5.As per the provided text, approximately how many countries were members of the World Trade Organisation (WTO) at the time of writing?

A. Around 50 countries. B. About 100 countries. C. About 160 countries. D. Over 200 countries.

Q6.What is the stated aim of the World Trade Organisation (WTO)?

A. To protect domestic industries from foreign competition. B. To liberalise international trade. C. To regulate global currency exchange rates. D. To promote regional trade blocs.

Q7.What is a key criticism regarding the practical implementation of WTO rules?

A. Developing countries have unfairly retained trade barriers. B. WTO rules primarily benefit small businesses. C. Developed countries have unfairly retained trade barriers. D. WTO encourages protectionist policies.

Q8.The current debate on trade practices, as highlighted in the text, primarily concerns which sector?

A. Information technology products. B. Automobile manufacturing. C. Agricultural products. D. Textile industries.

Q9.The liberalisation of foreign trade and investment in India was supported by which entities?

A. Local farmer unions. B. Some very powerful international organisations. C. Domestic industrial lobbies. D. Small and medium enterprises.

Q10.What is the view of powerful international organisations regarding barriers to foreign trade and investment?

A. They are necessary for national security. B. They are beneficial for local employment. C. They are harmful and should be removed. D. They should be selectively applied.

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Economics Practice Quiz 63