17
QuizMultiple Choice

Trade Barriers — Quiz

Question 17 • Economics

How do quotas help domestic producers?

Answer
A
Quotas limit the number of producers that compete in a sector.
B
Quotas facilitate increased exports of domestic goods.
C
Quotas lower the cost of domestic goods.
D
Quotas facilitate the sale of more domestic goods.

Explanation

A quota limits how much of a good can be imported. With fewer imported goods competing in the domestic market, domestic producers have more opportunity to sell their goods. Therefore, quotas facilitate the sale of more domestic goods.

AI-written and checked against the verified answer.

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