Trade Agreements

Question 5 • * HSA 26-27 US Government

What is the purpose of quotas?

Answer

to ban all imports from a country

to ensure specific goods are not available to consumers

to limit how much of a good can be imported

to keep prices on domestic goods low

Explanation

A quota sets a limit on the quantity of a particular good that may be imported. It does not necessarily ban imports entirely; it restricts how much can enter the country. Therefore, the correct choice is “to limit how much of a good can be imported.”

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