A-LevelEconomicsInternational economic issues9708/12 · May/June 2018 · Q271 Mark
Which statement about trade protection is correct?
Atariff will result in a greater decrease in demand for an import the lower its price elasticity of demand is.
BEmbargoes are only an effective trade barrier against imports in price-elastic demand.
CExport subsidies to domestic firms will prevent the dumping of foreign products in the domestic market.
DQuotas are less effective than tariffs for raising government revenue.
✓ Correct answer
D: Quotas are less effective than tariffs for raising government revenue.
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