A country removes tariffs on imported clothing. Imported prices fall and some domestic factories close. Which pair of effects best captures the main trade-off?
Consumers gain from lower prices, and every domestic worker gains a job
Consumers gain from lower prices, but some domestic workers lose jobs
Consumers lose from higher prices, but domestic output falls
Consumers lose from less choice, while domestic employment must rise
48 exam-style questions on AQA GCSE Economics 2.4 International trade and the global economy, covering 2.4.1a The importance of trade, 2.4.1b Advantages of trade and interdependence, 2.4.1c UK exports and imports, 2.4.2a How exchange rates are determined, 2.4.2b Effects of exchange rate changes, 2.4.3a Free-trade and its arguments, 2.4.3b Free-trade agreements such as the EU, 2.4.4a Features and growth of globalisation, 2.4.4b Benefits and drawbacks of globalisation, and 2.4.4c Moral, ethical and sustainability considerations. Each one has a worked solution and a mark scheme showing where the marks go.