7
QuizMultiple Choice

Trade Barriers — Quiz

Question 7 • Economics

What is the purpose of quotas?

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

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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