Import protection policy MCQ - Practice Questions with Answers

Import protection can be provided through quotas and tariffs. Quotas directly restrict the quantity of goods that may be imported, so domestic producers face less competition from foreign goods. Tariffs raise the price of imported goods by adding a tax or duty, making Indian goods relatively more competitive. Since the question asks how the Government protected goods produced in India from imports, both instruments are relevant. Saying only quotas or only tariffs leaves out the other protection tool, while rejecting both contradicts the policy logic.