Globalisation and trade restrictions — Paper 1 · IGCSE Economics (9-1) 0987

27 What is a quota in international trade? A a government grant to encourage production B an administrative and technical barrier C a limit on the quantity of imports D a tax on imports

1 marks

Answer: C

This question in 0987/11 May/June 2020

27 Which protectionist measure would be most suitable for a government to use to support the growth in exports of an industry? A embargo B quota C subsidy D tariff

1 marks

Answer: C

This question in 0987/12 May/June 2020

28 A country wishes to increase a current account surplus on the balance of payments. Which action would it take? A abolish an import quota B increase import tariffs C remove export subsidies D tax export producers

1 marks

Answer: B

This question in 0987/12 Oct/Nov 2020

28 Which method of protection always reduces the supply of an imported good to zero? A embargo B quota C subsidy D tariff

1 marks

Answer: A

This question in 0987/11 May/June 2021

27 What is the most likely benefit for a low-income economy if it removes tariffs on imported goods and services? A more choice for domestic consumers B more employment in declining industries C more exports by domestic firms D more tax revenue from imports

1 marks

Answer: A

This question in 0987/12 May/June 2021

28 Economies have become increasingly linked through globalisation. What would discourage this? A creation of a single world market B direct foreign investment by multinational companies C expansion of trade in financial services D protectionist policies by trading groups

1 marks

Answer: D

This question in 0987/12 May/June 2021

29 The US imposed tariffs on cars and motorcycles from Germany. What is the effect of these tariffs? A decrease in inflation in the US B decrease in trade between the US and Germany C increase in profits of car and motorcycle producers from Germany D increase in standards of living in the US and in Germany

1 marks

Answer: B

This question in 0987/12 Oct/Nov 2021

4 The US government introduces tariffs on steel imported from China. This increases the price of imported Chinese steel. Whose income would be likely to increase as a direct result? Chinese steel US government producers A yes yes B yes no C no yes D no no

1 marks

Answer: C

This question in 0987/11 May/June 2022

15 A government removed the quota on goods imported into the country. What is the most likely result of this? A a decrease in demand for domestic production B a decrease in domestic unemployment C a decrease in exports D a decrease in the balance of trade deficit

1 marks

Answer: A

This question in 0987/11 May/June 2022

25 The governments of low-income countries often allow foreign multinational companies (MNCs) to mine minerals in their country. Which conflict between benefit and cost might this cause the low-income countries? benefit cost A improved balance of trade training by the MNCs B higher employment loss of a finite resource C increased profits for the MNCs efficient production D more sustainable development economic growth

1 marks

Answer: B

This question in 0987/11 May/June 2022

28 A government removed the quota on goods imported into the country. What is the most likely result of this? A a decrease in demand for domestic production B a decrease in domestic unemployment C a decrease in exports D a decrease in the balance of trade deficit

1 marks

Answer: A

This question in 0987/12 May/June 2022

29 What is a restriction on the quantity of imports called? A dumping B quota C subsidy D tariff

1 marks

Answer: B

This question in 0987/12 Oct/Nov 2022

27 It is cheaper for developed economies to buy some cereals from developing economies than to produce them domestically. What might reduce international trade in cereals? A Cereals become less popular with the population of developing economies. B Developed economies place an embargo on cereal imports to prevent disease. C Governments tax cereal production in developed economies. D Producers of cereals in developing economies are subsidised.

1 marks

Answer: B

This question in 0987/11 May/June 2023

28 A country imposes a quota on imported cars. What is the most likely outcome of this action? A a decrease in the domestic output of cars B a decrease in the domestic price of cars C an increase in the tax revenue from car imports D an increase in the total revenue of domestic car producers

1 marks

Answer: D

This question in 0987/11 May/June 2023

28 Country X exports steel to country Y at a price below its cost of production. This has led to a fall in demand for steel produced in country Y. What is a method of trade protection that country Y could use to reduce the imports of steel from country X? A apply anti-dumping tariffs B increase interest rates C revalue the currency D subsidise the export of steel

1 marks

Answer: A

This question in 0987/12 May/June 2023

30 Country X has a persistent deficit on the current account of the balance payments. Which policy measure is most likely to improve this situation? A lowering import quotas B lowering income tax C lowering import tariffs D lowering export subsidies

1 marks

Answer: A

This question in 0987/12 May/June 2023

28 Country X believes that country Y is selling steel at prices below the average cost of production. So, country X imposes a higher tariff on steel imports from country Y. What does country X hope to achieve by imposing this higher tariff? A avoid country X dumping steel in country Y B avoid country Y dumping steel in country X C reduce inflation in country X D reduce inflation in country Y

1 marks

Answer: B

This question in 0987/12 Oct/Nov 2023

27 The diagram shows the market for an imported good with equilibrium at point X. The country imposes a tariff on this good. Is the new equilibrium at point A, B, C or D? price S1 B A S X S2 C D D D1 O quantity

1 marks

Answer: B

This question in 0987/12 May/June 2024

28 A government wishes to stop the dumping of a specific imported good at a very low price. Which method of protection would be most effective? A apply an embargo to this good B devalue the currency C increase interest rates D provide subsidies to home producers of this good The price of the US dollar in terms of other currencies is set by the forces of demand and supply.

1 marks

Answer: A

This question in 0987/12 Oct/Nov 2024

28 What might an economist consider to be meant by the term dumping? A foreign firms exporting waste products B foreign firms producing goods at a lower cost than domestic firms C foreign firms selling goods that are out of fashion D foreign firms exporting products at a price below the cost of production

1 marks

Answer: D

This question in 0987/11 May/June 2025

28 Mining by multinational companies (MNCs) has both costs and benefits for the host nation. Which activity is least likely to offer a benefit to the host nation? A developing courses for training in mining B investing in infrastructure to export minerals C repatriating profits and dividends D using new technology

1 marks

Answer: C

This question in 0987/12 May/June 2025

17 A government imposes tariffs on imported goods. What is not a likely reason for this? A to boost domestic output B to influence the country’s balance of payments C to protect domestic employment D to reduce the exports from the country

1 marks

Answer: D

This question in 0987/12 Oct/Nov 2025

28 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

1 marks

Answer: C

This question in 0987/12 Oct/Nov 2025

30 A government wishes to reduce the deficit on the current account of its balance of payments. Which policy should it adopt? A increase subsidies on exports B increase taxes on its exports C remove an embargo on imports D remove tariffs on its imports

1 marks

Answer: A

This question in 0987/12 Oct/Nov 2025