16
QuizMultiple Choice

Unit Test — Unit test

Question 16 • * HSA 26-27 Economics

How do quotas help domestic producers?

Answer
A
Quotas facilitate increased exports of domestic goods.
B
Quotas lower the cost of domestic goods.
C
Quotas limit the number of producers that compete in a sector.
D
Quotas facilitate the sale of more domestic goods.

Explanation

An import quota limits how much of a foreign good can enter a country. With fewer imports competing in the domestic market, consumers are more likely to buy goods made by domestic producers, helping them sell more. Quotas do not directly lower production costs or increase exports.

AI-written and checked against the verified answer.

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