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

Globalisation, free trade and protection — practice question

The US government decides to lower the quota on a good that it purchases from China. What is likely to happen?

  • AThe good will become cheaper in the US.
  • BThe US balance of trade will worsen.
  • CThe US government’s revenue will decline.
  • DThere will be less of the good imported into the US.

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