Economics (AS & A Level) · May / June 2021 · Paper 13 · Question 26

Which statement about trade protection is correct?

1. AA tariff results in a greater decrease in demand for an import the lower is its price elasticity of demand.
2. BEmbargoes are only an effective trade barrier when the demand for imports is price-elastic.
3. CExport subsidies to domestic firms will prevent the dumping of foreign products in the domestic market.
4. DQuotas are less effective than tariffs for raising government revenue.

As printed in the paper