A-LevelEconomicsInternational economic issues9708/12 · May/June 2014 · Q201 Mark
A country produces washing machines. The government lowered both the tax on washing machines produced in its country and the quota on imports of foreign washing machines. What is the likely result?
AGovernment revenue increased.
BHome production decreased.
CPrices of foreign washing machines fell.
DThe balance of trade in goods improved.
✓ Correct answer
D: The balance of trade in goods improved.
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