Gce Model Questions Vol1 2020 Economics Question 2

Practice objective / multiple choice question 2 from the 2020 Gce Model Questions Vol1 Economics examination.

Gce Model Questions Vol1 2020 Economics Objective / Multiple Choice Medium Difficulty
Question 2 GCE_MODEL_QUESTIONS_VOL1 • 2020 • ECONOMICS • objective

A small open economy faces a world price of \(\$40\) for a tradable good. Domestic demand is \(P = 120 - Q\) and domestic supply is \(P = 20 + 0.5Q\). The government imposes a specific tariff of \(\$10\) per unit on imports. Calculate the dead‑weight loss (in dollars) resulting from the tariff.

Answer Options

Correct Answer A. 150
B. 100
C. 200
D. 125
Correct Answer
A
Correct Option:
150

About This Question

This is Gce Model Questions Vol1 2020 Economics Question 2. It is one of the objective questions from the 2020 Gce Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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