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Economics

A Level

Do the benefits of protectionist trade policies outweigh the costs?

'Protectionism' is the policy of restricting trade between states through methods such as tariffs and quotas. Tariffs are often used to protect domestic consumers. The diagram linked .css-14jxgv6{display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-flex-direction:row;-ms-flex-direction:row;flex-direction:row;-webkit-align-items:center;-webkit-box-align:center;-ms-flex-align:center;align-items:center;}.css-14jxgv6 div:first-child{margin:10px 10px 5px 0;}.css-14jxgv6 div:last-child{margin-left:auto;}

Answered by Emilia C. • Economics tutor

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What is the difference between static and dynamic efficiency?

Static efficiency describes the level of efficiency at a certain point in time. This, therefore, describes both allocative and productive efficiency. A firm is productively efficient if they are at their ...

Answered by • Economics tutor

19138 Views

Why does a rise in interest rates lead to a fall in inflation?

A rise in interest rates increases the cost of borrowing and increases the reward for saving. This means that there is a double effect, people are disincentivised to borrow money and spend it, as well as ...

Answered by Karan S. • Economics tutor

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Explain the effect on economic growth if a government increases income tax (ceteris paribus).

An increase in taxation reflects tighter fiscal policy, reducing the take home pay of those employed. This will reduce the amount of income that households are willing to spend on goods and services in th...

Answered by • Economics tutor

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"What are the causes of an appreciation (outward shift of demand) for a floating exchange rate?"

Increase in incomes abroad: Increased incomes abroad increases their MPM. This increases demand for UK exports and thus demadn for the pound shifts. 2. A relative rise in UK interest rates: As UK I...

Answered by • Economics tutor

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