Economics Multiple Choice Question – 6 August 2021

The UK & the USA trade with each other. The UK imposes a general tariff of 20% on imports from the USA. 

In which circumstances would the imposition of the tariff be unfavourable to the UK?

Select ONE answer:

1. if the UK is seeking to protect its infant industries
2. if the UK lacks the capacity to produce import substitutes
3. if imports from the USA have been dumped in the UK
4. if imports of manufactured goods from the USA are price elastic

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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