Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Liberalisation, Privatisation and Globalisation - An Appraisal

Question:

Which of the following makes the imported goods costlier and thus results in restriction of trade?

Options:

Export duties

Quota

Tariff

All of the above

Correct Answer:

Tariff

Explanation:

In order to protect domestic industries, India was following a regime of quantitative restrictions on imports. This was encouraged through tight control over imports and by keeping the tariffs very high. Tariff is a tax that has to be paid on goods coming into a country. Whereas, quota refers to the restriction on quantity of imports.