CAIE A-Level Economics A2 11.6.3 Trade Creation Diversion Questions

Practise using tariff and customs-union diagrams to calculate import changes, identify trade creation or diversion and judge net welfare effects.

Syllabus
2026–2028
Course
Economics 9708
Level
A2

Exam points

  • Use tariff and customs-union diagrams to calculate import changes, identify trade creation or diversion and judge net welfare effects.

CAIE A-Level Economics A2 11.6.3 Trade Creation Diversion Questions question 1

[Maximum number: 1]

The diagram shows the effect of trade creation if a tariff is removed.

Figure for Question CAIE A-Level Economics A2 11.6.3 Trade Creation Diversion Questions question 1 — CAIE A-Level Economics A2

Which areas show the total net gain to the domestic economy?

A

v, w, x and y

B

v, w and x only

C

w and x only

D

w and y only

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