11
QuizMultiple Choice

Trade Barriers — Quiz

Question 11 • Economics

What is the government’s aim in setting quotas?

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

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.

Previous
Next