Economics 9708 · AS & A Level · Protectionism

Protectionism — practice question

Which option about trade protection is correct?

  • AA tariff will result in a greater decrease in demand for an import the lower its price elasticity of demand is.
  • BEmbargoes are only an effective trade barrier against imports in price-elastic demand.
  • 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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