Economics (AS & A Level) · May / June 2025 · Paper 31 · Question 25
9708Protectionism
A country's government imposes a tariff on steel imports. What is the likely impact of this tariff on this country's economy?
- AIt will make this country's steel exports more price competitive.
- BIt will lead to productive inefficiency in this country's steel industry.
- CThere will be an improvement in this country's terms of trade.
- DThere will be a decrease in producer surplus for this country's steel producers.
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Correct answer: B. It will lead to productive inefficiency in this country's steel industry.
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