7
QuizMultiple Choice

Trade Barriers

Question 7 • 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

An import quota sets a limit on how much of a good can be brought in from other countries. With fewer imported goods competing in the domestic market, domestic producers have more opportunity to sell their products. So quotas facilitate the sale of more domestic goods.

AI-written and checked against the verified answer.

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