A-LevelEconomicsInternational economic issues9708/12 · May/June 2012 · Q211 Mark

Which statement about the impact of a tariff and a quota is correct?

Atariff leaves the quantity of imports unchanged while a quota decreases the quantity of imports.

Btariff raises government revenue while a quota benefits the seller of the imports.

Ctariff raises the price of imports while a quota leaves import prices unchanged.

Dtariff shifts the supply curve of imports while a quota shifts the demand curve for imports.

✓ Correct answer

B: tariff raises government revenue while a quota benefits the seller of the imports.

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Topic: International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, May/June 2012 Paper 1 Variant 2, question 21.

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