Question

what is the government’s aim in setting quotas?
○ to create more competition in the market
○ to increase sales of domestic goods
○ to keep tariffs high
○ to limit export of domestic goods

Explanation:

Quotas are trade restrictions that limit the quantity of a good that can be imported. By restricting imports, domestic producers face less competition from foreign goods, which encourages consumers to buy domestic goods, thus increasing their sales. Creating more competition (first option) is opposite as quotas reduce import competition. Keeping tariffs high (third) is not the aim of quotas (quotas and tariffs are different trade tools). Limiting export (fourth) is not related to quotas' main aim (quotas are about imports, not exports). So the correct reason is to increase sales of domestic goods.

Answer:

B. to increase sales of domestic goods