6
practice testMultiple Choice

Practice Test

Question 6 • Personal Finance and Economics

What is a benefit associated with free trade?

Answer
A
limited market access for domestic industries
B
increased government revenue from tariffs
C
higher inflation due to import competition
D
enhanced innovation and technology

Explanation

Free trade gives businesses access to larger markets and exposes them to more ideas, products, and competitors. This can encourage innovation and the adoption of new technology. Tariffs, which can raise government revenue, restrict rather than promote free trade, while limited market access and higher prices are not typical benefits.

AI-written and checked against the verified answer.

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