SSC GD 2023 PYQ — Question 35

The correct answer is option 2 i.e. Both A and B

• Tariffs and quotas serve as protective measures implemented by governments to limit imports and bolster domestic producers.
• A tariff represents a tax on imported goods, raising their cost for consumers and reducing competitiveness against local products, thereby promoting the preference for domestic alternatives.
• Conversely, quotas establish restrictions on the quantity of imported goods, managing the flow of foreign products and protecting domestic industries from overwhelming competition.
• Both methods strive to protect local producers from external competition, aiming for fair competition.
• Although their objectives align, tariffs affect prices directly, while quotas regulate quantities.
• Frequently, governments employ a mix of these strategies to fulfill their trade policy goals.