Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Indian Economy:1950-1990

Question:
How do tariffs affect imported goods?
Options:
They make imported goods cheaper.
They encourage the use of imported goods.
They discourage the use of imported goods.
They have no impact on the price of imported goods.
Correct Answer:
They discourage the use of imported goods.
Explanation:
They make imported goods more expensive, which discourages their use and incentivizes the consumption of domestic alternatives.