9
lesson pretestMultiple Choice

Pretest

Question 9 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY

What is the government’s aim in setting quotas?

Answer
A
to keep tariffs high
B
to create more competition in the market
C
to increase sales of domestic goods
D
to limit export of domestic goods

Explanation

A quota sets a limit on how much of a product can be imported or exported. By restricting imports, a government can reduce competition from foreign goods and encourage people to buy more domestically produced goods. Therefore, the aim is to increase sales of domestic goods.

AI-written and checked against the verified answer.

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