Gce Model Questions Vol1 2024 Economics Question 15

Practice objective / multiple choice question 15 from the 2024 Gce Model Questions Vol1 Economics examination.

Gce Model Questions Vol1 2024 Economics Objective / Multiple Choice Medium Difficulty
Question 15 GCE_MODEL_QUESTIONS_VOL1 • 2024 • ECONOMICS • objective

The world price of an imported good is £10. The domestic demand is \( Q_{d}=200-4P \). The government imposes a specific tariff of £2 per unit.\n(a) Find the new domestic price paid by consumers.\n(b) Calculate the quantity imported after the tariff.\n(c) Determine the government revenue from the tariff.\n(d) Compute the dead‑weight loss resulting from the tariff.

Answer Options

A. Domestic price £12; imports 152 units; government revenue £304; dead‑weight loss £10
Correct Answer B. Domestic price £12; imports 152 units; government revenue £304; dead‑weight loss £8
C. Domestic price £12; imports 140 units; government revenue £280; dead‑weight loss £12
D. Domestic price £13; imports 152 units; government revenue £304; dead‑weight loss £8
Correct Answer
B
Correct Option:
Domestic price £12; imports 152 units; government revenue £304; dead‑weight loss £8

About This Question

This is Gce Model Questions Vol1 2024 Economics Question 15. It is one of the objective questions from the 2024 Gce Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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