Economics 0455 · IGCSE · Globalisation, free trade and protection
Globalisation, free trade and protection — practice question
In recent years, productivity growth in Brazil has been weak, so average costs have stayed relatively high. Some economists argue that this weak productivity growth is caused by protectionism. The Brazilian Government places high tariffs on many imports, including smartphones; it says this protectionism protects Brazilian jobs.
(a)[2]
Define the term ‘productivity’.
(b)[4]
Explain how average fixed cost differs from average variable cost.
(c)[6]
Analyse the advantages that a country may gain from specialising in a product such as smartphones.
(d)[8]
Discuss whether protectionism saves jobs.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Output per worker, or factor per unit of time” …