Economics (AS & A Level) · May / June 2025 · Paper 33 · Question 25

A country's government imposes a tariff on steel imports. What is the likely impact of this tariff on this country's economy?

1. AIt will make this country's steel exports more price competitive.
2. BIt will lead to productive inefficiency in this country's steel industry.
3. CThere will be an improvement in this country's terms of trade.
4. DThere will be a decrease in producer surplus for this country's steel producers.

As printed in the paper