Match List-I with List-II.
| List-I | List-II |
| (A) Quotas | (I) Monetary assistance given by government for production activities |
| (B) Import substitution | (II) Government protects domestic industries from foreign competition |
| (C) Tariffs | (III) Tax on imported goods |
| (D) Subsidy | (IV) Specify the quantity of goods which can be imported |
Choose the correct answer from the options given below :
Answer & explanation
Correct answer: option 1
The correct answer is option (1) : (A)-(IV), (B)-(II), (C)-(III), (D)-(I)
| List-I | List-II |
| (A) Quotas | (IV) Specify the quantity of goods which can be imported |
| (B) Import substitution | (II) Government protects domestic industries from foreign competition |
| (C) Tariffs | (III) Tax on imported goods |
| (D) Subsidy | (I) Monetary assistance given by government for production activities |
Quotas specify the quantity of goods which can be imported.
Import Substitution : A policy of the state for development of economy in which import of goods is generally substituted by domestic production (through import controls, tariffs and other restrictions) with a view to encourage domestic industry on grounds of self-sufficiency and domestic employment. In this policy the government protected the domestic industries from foreign competition.
Tariffs are a tax on imported goods; they make imported goods more expensive and discourage their use.
Subsidy : The monetary assistance given by government for production activities.