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A Level Economics (9708)•9708/12/M/J/20
Question 22 from 9708/12/M/J/20

Explanation

Importers argue free trade boosts consumer benefits through competition

Steps:

  • Identify importer's goal: Support free trade to lower import barriers, benefiting their business.
  • Consider consumer interests: Consumers favor policies that reduce prices and improve product variety.
  • Evaluate choices: Link each to free trade effects on consumers, focusing on positive outcomes like efficiency.
  • Select best fit: Choose argument that directly appeals to consumers via market improvements.

Why B is correct:

  • Free trade increases imports, heightening domestic competition, which lowers prices and enhances choices for consumers, per the law of demand and supply.

Why the others are wrong:

  • A: Free trade reduces tariffs, cutting government revenue, not raising it.
  • C: Imports often displace jobs in competing industries, reducing domestic employment.
  • D: While free trade may boost overall efficiency, it doesn't guarantee higher total employment; job shifts occur without net gains.

Final answer: B

Topic: Protectionism

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