Economics (AS & A Level) · Oct / Nov 2021 · Paper 32 · Question 15

An economy requires large inputs of steel for its building programmes. After political pressure, the government imposes a minimum price on imported foreign steel. When would this intervention lead to economic inefficiency?

1. Awhen it encourages domestic steel producers to achieve economies of scale
2. Bwhen it prevents dumping of low-grade steel
3. Cwhen it protects jobs of highly productive steel workers
4. Dwhen it reduces competition for steel workers

As printed in the paper