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A-LevelEconomicsInternational TradeMay/June 2012Paper 1 Q271 Mark

A government decides to reduce the quota on imported cars from 2000 to 1000 per year. What is likely to happen?

AThe balance of trade may improve.
BThe demand for the good will increase.
CThe good will become cheaper.
DThe government's revenue will decline.

✓ Correct Answer

The correct answer is A: The balance of trade may improve.

📋 Examiner Report & Trap Analysis

Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Economics Question

Topic

This multiple-choice question tests International Trade in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics May/June 2012 examination, Paper 1 Variant 2.

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