Economics 9708 · AS & A Level · Protectionism

Protectionism — practice question

A government chooses to cut the quota for imported cars from 2000 to 1000 per year. What is likely to happen?

  • AThe balance of trade may improve.
  • BThe demand for the good will increase.
  • CThe good will become cheaper.
  • DThe government’s revenue will decline.

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