Economics 9708 · AS & A Level · Protectionism

Protectionism — practice question

Which of the following statements about trade protection is correct?

  • 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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