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A Level Economics:

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Guess Paper for P4 Eco A2 will be posted here after P2 is over IA. All of u r expected to share your AS P2 eco experience on 22nd May 2013. We will also make comparison of guess and original paper.
 
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A2 students may post their issues here but I will answer those questions after 22nd May 2013. I wish all of you very best of luck and see u people after P2.
 
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Sir im not sure of the answer of Q3 b in the guess paper which you have provided.
Since if they are clearly askin about role of government in cost benefit analysis,how are we suppose to link it with the taxes & subsides provided in your answer?
 
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Tariff is a tax place on import of a good or service in order to increase its price and reduce the consumption of imported products plus switch the consumers to consume the domestic products. A tariff can either be specific for eg . 5 cents per product or it can be a percentage for eg. 20% of the total value of goods imported.There are points for and against the use of tariffs.

For:
  • Infant industry protection
  • Protect the employment in country
  • to correct a deficit in the balance of payments.
  • to raise revenue for government
  • protect a particular group for eg. farmers.
  • to avoid dumping.
Against:
  • Free trade has been the engine of growth during the past few years and tariff is a barrier to that.
  • the use of barriers like tariff may increase the gap b/w poor and rich countries.
  • it may reduce amt of choices of products for consumers.
  • infant industry protected might be inefficient and may charge higher prices.
 
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