The 'Safeguard duty' is imposed under WTO rules to: MCQ with Answer and Explanation

The 'Safeguard duty' is imposed under WTO rules to:
A. tax all exports
B. promote free trade
C. permanently ban imports
D. temporarily protect domestic industry from a sudden surge in imports
Answer: Option D
Solution (By JKSSB Mock Tests)
Safeguard duty is a temporary measure to protect domestic industry from an import surge.

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Practice More Economy Set 1 Questions

Question #1
Which of the following is an example of a non-tariff barrier to trade?
A. Import duty of 10%
B. Ad valorem tariff
C. Quota restriction on imports
D. Export subsidy

Correct Answer: Option C


Explanation:
Non-tariff barriers include quotas, technical standards, licensing requirements and voluntary export restraints. Tariffs are direct taxes on imports.

This question belongs to: Economy GK Economy Set 1
Question #2
The concept of 'Debt Overhang' refers to:
A. Only short-term liquidity problems
B. A situation of low public debt
C. A situation where existing debt is so large that it discourages new investment
D. Only household debt

Correct Answer: Option C


Explanation:
Debt overhang occurs when a high level of existing debt reduces the incentive for new investment because a large part of the returns would accrue to existing creditors rather than to the investor.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Goods and Services Tax' has a threshold exemption for small businesses to reduce:
A. imports
B. exports
C. compliance burden
D. revenue

Correct Answer: Option C


Explanation:
Threshold exemption reduces compliance burden for small businesses.

This question belongs to: Economy GK Economy Set 1