Economics 0455 · IGCSE · Globalisation, free trade and protection
Globalisation, free trade and protection — practice question
In 2015, Puerto Rico said it was looking at ending some of its trade embargoes. At the same time, its government was also reconsidering how much it intended to spend. Incomes in Puerto Rico have been rising, with some workers benefiting more than others. There have also been microeconomic changes, as the price elasticities of demand and supply have shifted in some markets.
(a)[2]
Identify two reasons why a government might impose an embargo on the import of a product.
(b)[4]
Explain two reasons why some young workers may earn more than some old workers.
(c)[6]
Analyse the factors that can make the supply of a product more price-elastic.
(d)[8]
Discuss whether a fall in government spending will benefit an economy.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Strengthen the current account position” …