Question 5(a)
[Maximum number: 8]
Explain two tools of protection used by a country when trading internationally and consider whether one is likely to have more of an impact on the country's economy than the other.
CAIE A-Level Economics 6.2.2 Protectionist tools
Practise analysing tariffs, quotas, subsidies, embargoes and red tape through diagrams, price effects and stakeholder impacts.
How this is tested
- use tariff diagrams to calculate changes in imports, consumer surplus and revenue
- explain how quotas, subsidies or embargoes alter prices, output and trade volumes
- evaluate which protection tool has the larger impact on consumers and producers