Accounting Multiple Choice Question – 13 July 2025

The Staffie product is manufactured in the UK but is also imported into the UK from Belgium.

The UK government has recently decided to apply an import quota on imports of the product from Belgium at a level below the current level of imports.

This action will have the effect of?

Select ONE answer:

1. Only Belgium suppliers suffering a lower price
2. Both UK and Belgium suppliers suffering a lower price
3. Only UK suppliers enjoying a higher price
4. Both UK and Belgium suppliers enjoying a higher price

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

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct == > Restricting supply (via quota) will cause the price to rise.

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