Economics (AS & A Level) · Oct / Nov 2024 · Paper 11 · Question 29

A government decides to place a tariff on imports of raw materials. Which statement about the impact of the tariff is correct?

1. AIt will increase costs of production for domestic firms.
2. BIt will increase consumer surplus for domestic consumers.
3. CIt will reduce government revenue.
4. DThere will be a fall in the price of imports and a rise in the demand.

As printed in the paper