Which of the following effects would not likely result from enacting a free trade agreement?
a. imports would increase.
b. exports would increase.
c. prices of goods would decrease.
d. quotas and tariffs would increase.

The correct answer is the fourth (D).

Free trade is a model of foreign trade where countries negotiate and exchange their productions without adopting protectionist quotas and tariffs on both sides.

In this context, each country will produce what is most efficient and import what is least efficient in producing. Consequently, with the adoption of a free trade agreement, exports and imports tend to increase and the price of goods should decrease, since the introduction of imported goods is a way of stimulating competition.

The only alternative that does not make sense for free trade is the increase in tariffs and quotas, just the opposite. So that's the answer.

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