WAEC 2021 Economics · Question 8

If a country imposes a barrier on trade, the resultant effect will be _________

Options

  1. A.a halt in buying and selling
  2. B.high quality goods from local industries
  3. C.an increase in the demand for locally produced goods
  4. D.shutdown of infant industries

Answer: C. an increase in the demand for locally produced goods

Explanation written with AI and checked against the answer key

Step 1: Analyze the question A trade barrier is any restriction on international trade, such as tariffs, quotas, embargoes, or import licences. The question asks what the likely result of imposing one is.

Step 2: Explain the concept Trade barriers make imported goods more expensive or harder to get. This is the idea behind protectionism. When foreign goods become costly or scarce, consumers and businesses turn to local substitutes. Demand for domestic products therefore rises, which is why governments often use barriers to protect their local industries.

Step 3: Evaluate each option

  • A. A halt in buying and selling: Wrong. Barriers restrict or reduce trade, but they do not stop all buying and selling. Domestic trade continues, and even some international trade continues.
  • B. High quality goods from local industries: Not a direct result. Protection from competition can actually reduce the pressure to improve quality. Quality is not automatically guaranteed.
  • C. An increase in the demand for locally produced goods: Correct. Imports become more expensive or limited, so consumers switch to local alternatives.
  • D. Shutdown of infant industries: Wrong. Barriers are used to protect infant industries (the infant industry argument), not to shut them down.

Step 4: Answer The correct option is C.

Tip: Link "barrier" with "protection." Whenever a question asks about the effect of tariffs, quotas, or bans on imports, think: imports fall, so local demand and local production rise. Also remember that the infant industry argument is a reason for trade barriers, so options suggesting that barriers hurt infant industries are usually traps.

AI can make mistakes. Report anything that looks wrong.

Past questions © the examination body (JAMB/WAEC/NECO). DeeepSolve is not affiliated with them. Rights holders: see /copyright.