Economics 2281 · O Level · Globalisation, free trade and protection
Globalisation, free trade and protection — practice question
During recent years, productivity growth in Brazil has been weak, so average costs have remained relatively high. Some economists argue that this sluggish rise in productivity is caused by protectionism. The Brazilian Government applies high tariffs to a range of imports, including smartphones, and says that 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 benefits that a country may obtain from specialising in a product such as smartphones.
(d)[8]
Discuss whether protectionism protects jobs.
Worked solution & mark scheme
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