Day: November 27, 2020

A developing country imposes a tariff to protect a new domestic industry.

Which argument would provide an acceptable economic case for this?

Select ONE answer:

1. It is believed that the industry will always need government assistance to compete internationally.
2. It is believed that the industry will compete effectively when it achieves economies of scale.
3. The country wishes to reduce the rate of inflation.
4. The country wishes to lower its terms of trade.

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS4 and KS5 classes.

The answer is 2

1. Not correct
2. Correct
3. Not correct
4. Not correct

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