Trade Barriers

Question 5 • GA-GSE Personal Finance and Economics

What is the purpose of quotas?

Answer

to ban all imports from a country

to ensure specific goods are not available to consumers

to limit how much of a good can be imported

to keep prices on domestic goods low

Explanation

A quota sets a maximum amount of a particular good that may be imported. It restricts the quantity without necessarily banning imports altogether, so the correct choice is “to limit how much of a good can be imported.”

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