A-LevelEconomicsInternational economic issues9708/12 · Oct/Nov 2021 · Q271 Mark

The diagram shows the effect of the United States (US) imposing a tariff on the import of steel in 2018. Which statement about the impact of the tariff is correct?

This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.

AConsumer surplus falls from P₁TO to PUO.

BDomestic output increases from OQ1 to OQ3.

CImports fall from Q1Q4 to Q2Q3.

DThe tax revenue raised on imports is P₁YWP.

✓ Correct answer

C: Imports fall from Q1Q4 to Q2Q3.

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Topic: International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Oct/Nov 2021 Paper 1 Variant 2, question 27.

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