3
lesson pretestMultiple Choice

Pretest

Question 3 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY

What is the purpose of quotas?

Answer
A
to limit how much of a good can be imported
B
to keep prices on domestic goods low
C
to ensure specific goods are not available to consumers
D
to ban all imports from a country

Explanation

A quota sets a limit on the quantity of a good that may be imported during a given period. It does not necessarily ban imports altogether; it restricts how much can enter the country. Therefore, the purpose of quotas is to limit how much of a good can be imported.

AI-written and checked against the verified answer.

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