“200”, Aptitude Test Questions and Answers for Trade Officer – MDA & LGA.
ABSTRACT
This set of multiple-choice questions is
created to help candidates prepare for the Trade Officer exams in Tanzania. It
covers topics like international trade, market analysis, export and import
rules, trade policies, and economic integration. The questions are practical
and designed to test understanding, problem-solving, and decision-making skills
that Trade Officers need in real work situations.
Prepared by: Trade Officers
Compiled by Johnson Yesaya Mgelwa.
0628729934.
Date: July 15, 2025
Dear applicants,
This collection of questions and answers
has been carefully prepared to help all of you to understand the key areas
tested during the interview. The goal is to provide a useful, and practical
study guide so you can all perform confidently and fairly in the selection
process. I wish you the best of luck, and may this resource support you in
achieving success!
Warm regards,
Johnson Yesaya Mgelwa
For Personal Use by Applicants Preparing
for MDA and LGA Trade Officer II interview at Public Service Recruitment Service.
ALL
QUESTIONS ARE COMPILED TOGETHER.
1. Which of the following best describes the main objective of a Trade Officer in an MDA or LGA?
A. To supervise financial audits of private companies B. To monitor and analyze
business trends C. To prepare annual budgets for ministries D. To manage human
resources in government offices
Answer: B
Rationale: The primary role of a Trade Officer is
to collect, analyze, and interpret business and trade information to guide
policy and support local and national commerce. While finance, HR, and
budgeting are important in government, they are not the core functions of a
Trade Officer.
2. A Trade Officer wants to compare the import and export volumes
of Tanzania over the last five years. Which method is most appropriate?
A. Conducting interviews with traders B. Reviewing statistical trade reports C. Observing market stalls D. Sending questionnaires to schools
Answer: B
Rationale: Statistical trade reports provide
reliable historical data on imports and exports, which is essential for trend
analysis. Interviews and observations may give anecdotal information but lack
comprehensive coverage.
3. If the government imposes a tariff on imported rice, which of
the following is the most likely effect?
A. Increase in domestic rice prices B. Decrease in domestic rice prices C. No
effect on domestic market D. Sudden decrease in exports
Answer: A
Rationale: Tariffs increase the cost of imported
goods, which makes domestic substitutes relatively more expensive. As a result,
domestic prices tend to rise, encouraging local production but possibly
reducing affordability for consumers.
4. A Trade Officer receives data showing that exports of coffee to
Kenya have decreased by 12%. Which of the following should be their immediate
step?
A. Report the decline to the finance ministry B. Analyze market conditions and
possible causes C. Advise farmers to stop coffee production D. Increase import
taxes on Kenyan goods
Answer: B
Rationale: Identifying the causes of trade
fluctuations is key. The officer must analyze factors such as market demand,
competition, pricing, or policy changes before making any recommendations or
reports.
5. Which of the following charts is most suitable for showing the
trend of Tanzania’s total exports over a decade?
A. Pie chart B. Scatter plot C. Histogram D. Line chart
Answer: D
Rationale: Line charts effectively display trends
over time, allowing visualization of increases, decreases, and patterns in
export data. Pie charts show proportions at one point, scatter plots show
relationships, and histograms show frequency distributions.
6. Which of the following is a key principle of international trade
that Trade Officers must understand?
A. Comparative advantage B. Local taxation only C. Office hierarchy D. Salary
structure
Answer: A
Rationale: Comparative advantage explains why
countries specialize in producing certain goods efficiently, which underpins
trade strategies. Other options relate to internal administrative concerns
rather than trade principles.
7. If Tanzanian exports increase while imports remain constant,
which of the following is likely to happen?
A. Trade balance improves B. Trade deficit increases C. Inflation drops automatically D. Exchange rates collapse
Answer: A
Rationale: An increase in exports relative to
imports improves the trade balance because more goods are sold abroad than
purchased, strengthening the country’s economic position.
8. A business trader in Dar es Salaam requests market data on wheat
from a Trade Officer. The most appropriate source of information would be:
A. Local newspaper articles B. Social media posts C. Ministry of Agriculture
reports D. School textbooks
Answer: C
Rationale: Official Ministry reports provide
accurate, verified trade and agricultural data suitable for analysis.
Newspapers, social media, and textbooks are not reliable for current trade
figures.
9. A Trade Officer notices a sudden increase in imported goods at
the border. Which of the following would be the best initial action?
A. Ignore the change B. Investigate trade policies and market demand C. Close
the border immediately D. Advise traders to export more
Answer: B
Rationale: Sudden changes in imports require
analysis to understand causes such as policy shifts, demand, or seasonal
variations. Immediate action without analysis can disrupt trade unnecessarily.
10. Which of the following best describes a free trade agreement
(FTA)?
A. An agreement to reduce tariffs and barriers between countries B. A
regulation to increase local taxes C. A policy to nationalize foreign companies D.
A government program for subsidies
Answer: A
Rationale: FTAs aim to promote trade by lowering
tariffs and non-tariff barriers between participating countries, facilitating
easier exchange of goods and services. Other options do not describe FTAs.
11. Which of the following skills is most important for a Trade
Officer preparing a report for senior management?
A. Driving skills B. Office cleaning C. Cooking D. Data
analysis and interpretation
Answer: D
Rationale: A Trade Officer must analyze trade data
accurately and present it clearly for decision-making. Other skills, while
useful in life, are irrelevant for this professional function.
12. If Tanzania’s coffee exports are falling due to low demand
abroad, which government policy could help?
A. Increasing import tariffs on rice B. Cutting government salaries C.
Subsidizing coffee farmers D. Banning local coffee consumption
Answer: C
Rationale: Subsidies reduce production costs and
encourage farmers to continue producing coffee despite low demand. Tariffs on
unrelated goods or salary cuts have no direct effect on coffee exports.
13. Which of the following is an example of non-tariff barriers in
international trade?
A. Import duties B. Export taxes C. Income tax D. Quotas on imports
Answer: D
Rationale: Non-tariff barriers restrict trade
without imposing taxes, such as quotas, licensing requirements, or standards.
Duties and taxes are tariff-based measures; income tax is domestic and
unrelated to trade barriers.
14. A Trade Officer wants to visualize the proportion of different
goods exported to the European Union. Which chart is most suitable?
A. Pie chart B. Line chart C. Scatter plot D. Histogram
Answer: A
Rationale: Pie charts effectively display
proportions of categories at a single point in time, making them ideal for
showing the share of various exported goods.
15. Which of the following factors is most likely to affect
Tanzania’s trade with Kenya?
A. Local school timetables B. Internal office memos C. Exchange rates and
tariffs D. Seasonal rainfall only
Answer: C
Rationale: Exchange rates and tariffs directly
affect cross-border trade by influencing costs and competitiveness. Schools,
office memos, and rainfall alone have minimal impact on trade policies.
16. Which of the following best describes the role of a Trade
Officer when dealing with foreign sanctions?
A. Ignoring the sanctions and continuing trade
B. Advising traders on compliance and alternative markets C. Increasing domestic taxes randomly D. Closing local offices
Answer: B
Rationale: Trade Officers must ensure businesses
comply with sanctions while identifying alternative markets to maintain trade.
Ignoring sanctions or random administrative actions could lead to legal and
economic consequences.
17. If Tanzanian traders face high competition from imported goods,
which action aligns with government support?
A. Increase import tariffs on local goods B. Close local markets C. Provide
export promotion programs D. Reduce salaries of traders
Answer: C
Rationale: Export promotion and local business
support programs help domestic traders remain competitive. Tariffs on local
goods or closing markets would harm domestic trade.
18. Which of the following is most likely a responsibility of a
Trade Officer in market analysis?
A. Collecting price and supply data B. Serving in local councils C. Drafting
legal bills D. Teaching school students
Answer: A
Rationale: Market analysis relies on accurate data
on prices, supply, demand, and competition. Other options are unrelated to
trade monitoring or policy support.
19. If a Trade Officer observes that exports to the USA have
stagnated despite high production, which factor is most important to
investigate first?
A. Employee lunch schedules B. Office decoration C. International demand and
trade regulations D. Vehicle maintenance
Answer: C
Rationale: Export stagnation is usually caused by
international demand, tariffs, quotas, or standards. Internal office issues are
irrelevant to trade performance.
20. Which type of data is most useful for analyzing seasonal changes
in Tanzanian agricultural exports?
A. Single-year average B. Census population data C. Monthly export statistics D.
School enrollment rates
Answer: C
Rationale: Monthly data allows identification of
seasonal trends and patterns in production and exports. A single-year average
hides fluctuations, and unrelated data such as population or school rates are
not useful.
21. Which of the following is an example of a primary source of
trade information?
A. Customs import/export records B. Newspaper articles C. Trade blogs D. Social
media posts
Answer: A
Rationale: Primary sources are original, verified
data such as official customs records, while newspapers, blogs, and social
media are secondary and may be unreliable.
22. If the government wants to encourage export of manufactured
goods, which policy would be most effective?
A. Increasing import duties on fuel only B. Export incentives such as tax
rebates C. Reducing public service salaries D. Closing
border checkpoints
Answer: B
Rationale: Export incentives make domestic products
more competitive abroad and encourage growth in manufactured exports. Other
measures are either unrelated or counterproductive.
23. Which of the following best explains “balance of trade”?
A. Difference between the value of exports and imports B. Government budget
surplus C. Employee salary structure D. Population growth rate
Answer: A
Rationale: Balance of trade measures the economic
difference between a country’s exports and imports. It reflects the health of
trade, unlike budget, salaries, or demographics.
24. If Tanzania wants to evaluate the effect of inflation on export
prices, which data is most relevant?
A. Monthly consumer price index (CPI) B. Local school timetables C.
Office furniture expenditures D.
Employee satisfaction surveys
Answer: A
Rationale: CPI reflects inflation, which affects
production costs and export pricing. Non-economic data like school schedules or
office-related matters do not provide trade-relevant insights.
25. Which skill is most critical for a Trade Officer analyzing
foreign trade agreements?
A. Driving vehicles B. Cooking meals C. Art and painting skills D.
Understanding economic principles and trade policies
Answer: D
Rationale: Evaluating trade agreements requires
strong understanding of economics, tariffs, regulations, and international
market dynamics. Non-analytical skills do not support this function.
26. A Trade Officer notices that local prices of maize are rising
while imports remain stable. What could be the likely reason?
A. Increased local demand B. Decrease in government salaries C. School
schedules changing D. Reduction of office hours
Answer: A
Rationale: Rising local prices with stable imports
usually indicate increased domestic demand or reduced local supply. Other
options are unrelated to market pricing.
27. Which of the following best explains “comparative advantage” in
trade?
A. A government imposes tariffs B. Local schools offer economics courses C. A
country produces goods more efficiently than another D.
Companies pay higher salaries
Answer: C
Rationale: Comparative advantage occurs when a
country can produce certain goods more efficiently than others, forming the
basis for specialization and trade. Tariffs and salaries do not define
comparative advantage.
28. If Tanzanian exporters face non-tariff barriers abroad, which
action should a Trade Officer recommend first?
A. Understanding foreign regulations and compliance requirements B. Increasing
domestic taxes C. Closing local markets D. Ignoring the problem
Answer: A
Rationale: Non-tariff barriers such as quotas,
quality standards, or licensing require careful compliance. Understanding these
regulations is the first step before any corrective action.
29. Which
of the following indicators best measures the competitiveness of Tanzania’s
manufacturing exports?
A. Employee lunch breaks B. Export
volume relative to global market share C.
Office renovation schedules D. Local
school holidays
Answer: B
Rationale: Export volume and global market share
indicate competitiveness, reflecting how well Tanzanian products perform abroad
compared to international rivals.
30. A Trade Officer observes that exports of manufactured goods have
increased, but revenue has not grown proportionally. Which factor is likely
responsible?
A. Higher local salaries B. Decrease in international prices C. Office
renovations D. New employee recruitment
Answer: B
Rationale: Increased volume does not always
increase revenue if prices in international markets fall. Internal office
changes do not directly affect export revenue.
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