Protectionism
6.2What the syllabus asks of you
- meaning of protectionism in the context of international trade
- different tools of protection and their impact: tariffs
- different tools of protection and their impact: import quotas
- different tools of protection and their impact: export subsidies
- different tools of protection and their impact: embargoes
- different tools of protection and their impact: excessive administrative burdens (‘red tape’)
- arguments for and against protectionism
Drill this topic
Every question on Protectionism, untimed, marked as you go.
Make a worksheet
Choose the years and how many questions, then print it with the answers on separate pages.
54 questions
1May / June 2026 · Paper 11 · Q26Show mark scheme →
Aimport quotas
Binterest-free loans provided by the government
Creductions in profits (business) taxes
Dfinancial help given to local firms
Mark scheme
2May / June 2026 · Paper 12 · Q28Show mark scheme →
Aan increase in product safety standards
Ban increase in subsidies to domestic firms
Can increase in the level of import quotas
Dan increase in the rate of import duties
Mark scheme
3May / June 2026 · Paper 12 · Q29Show mark scheme →
Aa cut in income tax rates
Ba cut in interest rates
Can increase in import tariffs
Dan increase in spending on training workers in domestic tourism
Mark scheme
4May / June 2026 · Paper 13 · Q26Show mark scheme →
Aa ban on imports of chicken products
Bimport tariffs on agricultural products
Cmaximum supermarket food prices
Dstrict health and safety requirements for imported products
Mark scheme
5May / June 2026 · Paper 13 · Q29Show mark scheme →
Ato improve the current account of the balance of payments
Bto improve the terms of trade
Cto reduce the rate of domestic inflation
Dto protect strategic industries
Mark scheme
6May / June 2026 · Paper 14 · Q26Show mark scheme →
Aimposing an embargo | reducing subsidies to domestic producers
Bimposing exchange controls | lowering quota levels
Cintroducing voluntary export agreements | increasing subsidies to domestic producers
Dremoving quotas | introducing embargos
Mark scheme
7Oct / Nov 2025 · Paper 12 · Q30Show mark scheme →
Aconsumer surplus increases by VUT; government revenue decreases by WVTX
Bconsumer surplus increases by VUT; government revenue decreases by WVQ3Q2
Cconsumer surplus increases by P1VUP2; government revenue decreases by WVTX
Dconsumer surplus increases by P1VUP2; government revenue decreases by WVQ3Q2
Mark scheme
8Oct / Nov 2025 · Paper 14 · Q26Show mark scheme →
Aembargoes
Bexport subsidies
Cimport quotas
Dtariffs
Mark scheme
9Oct / Nov 2025 · Paper 14 · Q29Show mark scheme →
Athe protection of consumers against excessive prices
Bthe protection of employees against exploitation by multinational companies
Cthe protection of local producers against international competitors
Dthe protection of the foreign exchange rate against currency speculators
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10May / June 2025 · Paper 11 · Q27Show mark scheme →
AIt is a complete ban on imports.
BIt is a minimum price for domestic producers.
CIt is a payment to exporters.
DIt is a tax imposed on imports.
Mark scheme
11May / June 2025 · Paper 12 · Q26Show mark scheme →
Ato allow a newly developed domestic industry to grow to a viable size
Bto enable a country to retain control of an industry it regards as being of strategic importance
Cto give consumers a wider choice of goods and services
Dto give time for workers in a declining domestic industry to find alternative employment
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12May / June 2025 · Paper 13 · Q26Show mark scheme →
AOnce the protected industry becomes established, it will produce efficiently.
BIt prevents heavily subsidised imports from competing unfairly against domestic goods.
CIt provides time for the protected industry's workers to be retrained for other work.
DIt increases the standard of living of the population in general.
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13May / June 2025 · Paper 13 · Q28Show mark scheme →
Ajobs will be created in the domestic car industry
Bprices of cars will fall for domestic consumers
Cspecialisation is reduced
Dtrading partners will retaliate
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14May / June 2025 · Paper 31 · Q25Show mark scheme →
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.
Mark scheme
15May / June 2025 · Paper 32 · Q29Show mark scheme →
Athe need to allow free trade
Bthe need to control inflation
Cthe need to have a contractionary fiscal policy
Dthe need to privatise government enterprises
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16May / June 2025 · Paper 33 · Q25Show mark scheme →
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.
Mark scheme
17May / June 2025 · Paper 34 · Q24Show mark scheme →
AQ1Q4
BQ1Q4– Q1Q2
CQ1Q4– Q1Q3
DQ1Q4– Q2Q3
Mark scheme
18Feb / March 2025 · Paper 12 · Q30Show mark scheme →
Adomestic output of oil will increase by 15 million units
Bimports of oil will decrease by 25 million units
Cthe domestic price of oil will decrease by $28
Dthe domestic price of oil will increase by $8
Mark scheme
19Oct / Nov 2024 · Paper 11 · Q29Show mark scheme →
AIt will increase costs of production for domestic firms.
BIt will increase consumer surplus for domestic consumers.
CIt will reduce government revenue.
DThere will be a fall in the price of imports and a rise in the demand.
Mark scheme
20Oct / Nov 2024 · Paper 12 · Q28Show mark scheme →
Athe European Union (EU) requiring goods imported into member states to meet safety standards
Bthe Pakistan government increasing the rate of goods and services tax (GST) on some exported goods from 2% to 5%
Cthe Nigeria government banning the import of packaged sugar
Dthe US imposing a 35% tariff on tyres imported from China
Mark scheme
21Oct / Nov 2024 · Paper 13 · Q28Show mark scheme →
Aadministrative barrier / import quota
Badministrative barrier / embargo
Cembargo / administrative barrier
Dembargo / import quota
Mark scheme
22May / June 2024 · Paper 11 · Q25Show mark scheme →
Aexport subsidies
Bimport subsidies
Cquotas
Dtariffs
Mark scheme
23May / June 2024 · Paper 11 · Q30Show mark scheme →
AThey are an effective way of raising revenue.
BThey improve the balance of payments on a current account.
CThey improve a nation's terms of trade in a bilateral agreement.
DThey may lead to retaliation by trading partners.
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24May / June 2024 · Paper 13 · Q25Show mark scheme →
AUS importers of steel pay lower prices for steel.
BUS manufacturers become less competitive.
CUS steel makers increase steel production.
DUS steel workers receive higher incomes.
Mark scheme
25May / June 2024 · Paper 13 · Q27Show mark scheme →
AConsumers in the importing country will suffer a loss of consumer surplus.
BThe exporting country will gain export revenue.
CThe importing country's primary income will increase.
DThe price of natural gas will rise in other importing countries.
Mark scheme
26Feb / March 2024 · Paper 12 · Q29Show mark scheme →
Aan embargo on imports
Ban exchange rate appreciation
Ca subsidy to domestic producers
Da tariff on imports
Mark scheme
27Oct / Nov 2023 · Paper 33 · Q29Show mark scheme →
AQ1Q2
BQ1Q4
CQ2Q3
DQ3Q4
Mark scheme
28May / June 2023 · Paper 11 · Q26Show mark scheme →
Adecreasing existing quotas
Bincreasing interest rates
Csubsidies paid to export industries
Dwage subsidy schemes during recessions
Mark scheme
29May / June 2023 · Paper 13 · Q29Show mark scheme →
A$120 million
B$160 million
C$220 million
D$280 million
Mark scheme
30Oct / Nov 2022 · Paper 11 · Q21Show mark scheme →
AMN
BMX
CNP
DXP
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31Oct / Nov 2022 · Paper 12 · Q27Show mark scheme →
Athe price elasticities of domestic supply and demand
Bthe tariff rate and the price elasticities of both domestic demand and supply
Cthe tariff rate and the price elasticity of domestic demand
Dthe tariff rate and the price elasticity of domestic supply
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32Oct / Nov 2022 · Paper 13 · Q20Show mark scheme →
Aa reduction of WV
Ba reduction of XV
Ca reduction of XW
Da reduction of ZY
Mark scheme
33May / June 2022 · Paper 11 · Q21Show mark scheme →
Aan ad valorem tariff
Ban embargo
Ca quota
Da specific tariff
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34May / June 2022 · Paper 11 · Q23Show mark scheme →
Ato encourage domestic refineries to increase production
Bto improve the country's trade balance
Cto reduce fuel prices for domestic consumers
Dto reduce the government's budget surplus
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35May / June 2022 · Paper 12 · Q25Show mark scheme →
AThe domestic demand for smartphones will rise.
BThe domestic price of smartphones will rise.
CThe government will lose tax revenue.
DThe supply of imports will increase.
Mark scheme
36May / June 2022 · Paper 12 · Q26Show mark scheme →
Aan embargo
Ban export subsidy
Ca quota
Dvoluntary export restraint
Mark scheme
37May / June 2022 · Paper 14 · Q20Show mark scheme →
AIt is a ban on the import of demerit goods.
BIt imposes strict product regulations on imports.
CIt is a unit tax that raises the price of imported goods.
DIt limits the quantity of certain imported goods.
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38Feb / March 2022 · Paper 12 · Q20Show mark scheme →
Adecrease; decrease
Bincrease; increase
Cdecrease; uncertain
Dincrease; uncertain
Mark scheme
39Feb / March 2022 · Paper 12 · Q26Show mark scheme →
Aembargoes
Bincrease in sales tax (VAT)
Csubsidies on goods for export
Dvoluntary export restraints
Mark scheme
40Oct / Nov 2021 · Paper 12 · Q22Show mark scheme →
AVoluntary export restraint would achieve an immediate correction for X's balance of trade deficit.
BVoluntary export restraint would cause the level of GDP to increase in country X.
CVoluntary export restraint would help to negotiate improved trading conditions between X and Y.
DVoluntary export restraint would help to reduce the level of unemployment in country X.
Mark scheme
41Oct / Nov 2021 · Paper 12 · Q27Show mark scheme →
AConsumer surplus falls from P1TO to PUO.
BDomestic output increases from OQ1 to OQ3.
CImports fall from Q1Q4 to Q2Q3.
DThe tax revenue raised on imports is P1YWP.
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42Oct / Nov 2021 · Paper 13 · Q20Show mark scheme →
Abalance of trade: increase; terms of trade: increase
Bbalance of trade: increase; terms of trade: decrease
Cbalance of trade: decrease; terms of trade: increase
Dbalance of trade: decrease; terms of trade: decrease
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43Oct / Nov 2021 · Paper 13 · Q22Show mark scheme →
AThe demand for the good will fall.
BThe good will become more expensive.
CThe government's revenue will decline.
DThere will be more of the good imported.
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44Oct / Nov 2021 · Paper 13 · Q24Show mark scheme →
AThe balance of payments of country X and country Y will remain unchanged.
BThe exchange rate value on which trade between the two countries is based will be maintained.
CThe profits and employment of domestic firms in both countries will be preserved.
DThe volume of bilateral trade between country X and country Y will be reduced.
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45Oct / Nov 2021 · Paper 13 · Q26Show mark scheme →
Ademand falls, domestic supply falls
Bdemand falls, domestic supply rises
Cdemand rises, domestic supply falls
Ddemand rises, domestic supply rises
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46May / June 2021 · Paper 11 · Q26Show mark scheme →
Afall; fall
Bincrease; no change
Cno change; fall
Dno change; increase
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47May / June 2021 · Paper 12 · Q21Show mark scheme →
Adecrease the deficit on the capital account
Bdecrease the deficit on the current account
Cincrease the deficit on the capital account
Dincrease the deficit on the current account
Mark scheme
48May / June 2021 · Paper 12 · Q25Show mark scheme →
A400
B800
C1000
D2000
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49May / June 2021 · Paper 13 · Q20Show mark scheme →
Ato improve balance of trade
Bto increase price of exports
Cto protect infant industries
Dto reduce the volume of imports
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50May / June 2021 · Paper 13 · Q24Show mark scheme →
A+0.5 / –0.5
B+0.5 / –1.5
C+1.5 / –0.5
D+1.5 / –1.5
Mark scheme
51May / June 2021 · Paper 13 · Q26Show mark scheme →
AA tariff results in a greater decrease in demand for an import the lower is its price elasticity of demand.
BEmbargoes are only an effective trade barrier when the demand for imports is price-elastic.
CExport subsidies to domestic firms will prevent the dumping of foreign products in the domestic market.
DQuotas are less effective than tariffs for raising government revenue.
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52May / June 2021 · Paper 32 · Q29Show mark scheme →
Aincomes: fall; balance of payments current account deficit: reduce; government expenditure: rise
Bincomes: fall; balance of payments current account deficit: uncertain; government expenditure: rise
Cincomes: rise; balance of payments current account deficit: reduce; government expenditure: no change
Dincomes: rise; balance of payments current account deficit: uncertain; government expenditure: rise
Mark scheme
53Feb / March 2021 · Paper 12 · Q24Show mark scheme →
A3
B5
C10
D12
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54Feb / March 2021 · Paper 32 · Q28Show mark scheme →
Aa ban on resource exploration by mining companies in developing economies
Brestrictions on investment by global firms in developing economies
Cthe removal of restrictions on emigration of skilled labour from developing economies
Dthe withdrawal of agricultural subsidies in developed economies
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