8
QuizMultiple Choice

The Global Economy — Test

Question 8 • CMS 2026-2027 Economics and Personal Finance INITIAL CREDIT

What is the most common reason why countries create trade agreements?

Answer
A
to decrease trade
B
to establish quotas
C
to create free trade
D
to limit imports

Explanation

Countries most commonly create trade agreements to make trade between them easier by reducing or removing barriers such as tariffs. This encourages the exchange of goods and services, creating freer trade. So the correct choice is “to create free trade.”

AI-written and checked against the verified answer.

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