Economics 0455 · IGCSE · Globalisation, free trade and protection
Globalisation, free trade and protection — practice question
Gold prices climbed in 2016. As a result, owners of gold mines were encouraged to use more resources so that gold supply could be increased. The extent of competition in gold production is not the same in the various gold-producing countries. A number of countries, including India, levy a tariff on gold imports.
(a)[2]
Identify two factors of production used in gold mining.
(b)[4]
Explain two reasons why a government may impose a tariff on imported gold.
(c)[6]
Analyse the ways in which perfect competition is different from monopoly.
(d)[8]
Discuss whether an economy should mine and sell all of its gold now or not.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Labour factor” …