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CAIE IGCSE Economics 6.2.6 Consequences of Trade Restrictions Questions

Practise Cambridge IGCSE Economics by analysing how import tariffs change prices and quantities and evaluating effects on consumers, firms, employment, revenue and efficiency.

Syllabus
2027–2029
Course
Economics 0455

Exam points

  • Explain how an import tariff raises the domestic price and reduces the quantity of imports and consumer choice.
  • Analyse tariff effects on domestic producers, government revenue, consumers, employment, efficiency and the balance of payments.
  • Evaluate tariff policy using the product context, demand elasticity and competing trade-offs such as protection versus higher prices.

CAIE IGCSE Economics 6.2.6 Consequences of Trade Restrictions Questions question 1

[Maximum number: 1]

An economy raises its tariffs on imported goods.
What is the most likely result?

A

a fall in the rate of inflation

B

an increase in consumer choice

C

an increase in domestic production

D

the current account of the balance of payments moves into a deficit

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