In the context of trade policy, 'Import Substitution' strategy aims at: MCQ with Answer and Explanation

In the context of trade policy, 'Import Substitution' strategy aims at:
A. Promoting exports through subsidies
B. Replacing imports with domestic production through protection
C. Only reducing tariffs
D. Complete free trade
Answer: Option B
Solution (By JKSSB Mock Tests)
Import substitution industrialisation seeks to reduce dependence on imports by protecting and promoting domestic industries through tariffs, quotas and other measures.

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Practice More Economy Set 1 Questions

Question #1
The 'Reserve Bank of India' issues currency notes of denominations up to:
A. Rs 5,000
B. Rs 1,000
C. Rs 10,000
D. Rs 100

Correct Answer: Option B


Explanation:
RBI issues currency notes up to Rs 1,000 denomination, while one rupee notes are issued by Government of India.

This question belongs to: Economy GK Economy Set 1
Question #2
The term 'Primary Deficit' is defined as:
A. Fiscal deficit plus interest payments
B. Budget deficit minus interest payments
C. Revenue deficit minus interest payments
D. Fiscal deficit minus interest payments

Correct Answer: Option D


Explanation:
Primary deficit = Fiscal deficit − Interest payments. It indicates the borrowing requirement of the government excluding interest payments on previous borrowings.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Goods and Services Tax' on agricultural implements is:
A. 0%
B. 12%
C. 5%
D. 18%

Correct Answer: Option C


Explanation:
Agricultural implements generally attract 5% GST, with some exemptions.

This question belongs to: Economy GK Economy Set 1