Economics 2281 · O Level · Globalisation, free trade and protection

Globalisation, free trade and protection — practice question

Russia exports wheat. In 2010, a poor harvest led the Russian government to stop wheat being exported, so that adequate supplies would stay available for domestic use. What was the most likely result of the government’s action?

  • Aprices were fixed by the wheat producers
  • Bthe amount produced was determined by the government
  • Cthe price of wheat abroad fell
  • Dthere was a redistribution of domestic production

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