5
QuizMultiple Choice

Trade Barriers

Question 5 • GA-GSE Personal Finance and Economics

How do quotas help domestic producers?

Answer
Q
Quotas facilitate increased exports of domestic goods.
Q
Quotas lower the cost of domestic goods.
Q
Quotas limit the number of producers that compete in a sector.
Q
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 market, domestic producers have more opportunity to sell their products. So quotas facilitate the sale of more domestic goods.

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