Economics 9708 · AS & A Level · Protectionism

Protectionism — practice question

The diagram illustrates the effect of the United States (US) introducing a tariff on steel imports in 2018. Which statement correctly describes the impact of the tariff?

  • 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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