South Africa's imports have been rising faster than exports, leading to a growing current account deficit. The government introduces export incentives and import tariffs on non-essential goods. This policy combination is most directly intended to improve:

South Africa's imports rising faster than exports leads to a growing current account deficit. The government's policy combination of export incentives and import tariffs on non-essential goods aims to address this imbalance. Step 1: Analyze the problem statement. The core issue is a "growing current account deficit" caused by imports rising faster than exports. Step 2: Analyze the policy combination. Export incentives* encourage more exports, increasing the inflow of foreign currency. Import tariffs on non-essential goods* make imports more expensive, discouraging them and reducing the outflow of foreign currency. Step 3: Determine the direct impact of these policies. Both policies are designed to improve the balance of trade (exports minus imports), thereby reducing the current account deficit. Step 4: Evaluate the given options in the context of improving the current account deficit. A. External stability* refers to a country's ability to maintain a sustainable balance of payments, including a manageable current account. Reducing a current account deficit directly contributes to external stability. B. Price stability* relates to controlling inflation. While tariffs can affect prices, the primary goal here is not inflation control but the trade balance. C. Economic growth* is about increasing the output of goods and services. While trade policies can influence growth, the immediate problem is the deficit, not a lack of growth. D. Redistribution of wealth* involves policies to change the distribution of income or assets among the population, which is not the direct aim of these trade policies. The policies are directly intended to correct the imbalance in international trade and payments, which falls under the objective of external stability. The correct option is A. A. External stability That's 2 down. 3 left today — send the next one.