A-LevelEconomicsInternational economic issues9708/12 · Oct/Nov 2014 · Q211 Mark

As a result of a trade agreement, toys produced in Africa can be supplied to European markets. These toys are much cheaper than similar toys produced in Europe but are not of such good quality. What will happen in Europe to expenditure on toys, employment in European toy companies and imports from Africa?

Adecrease | decrease | decrease

Bincrease | decrease | uncertain

Cincrease | uncertain | increase

Duncertain | uncertain | increase

✓ Correct answer

D: uncertain | uncertain | increase

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Topic: International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Oct/Nov 2014 Paper 1 Variant 2, question 21.

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