QUESTION IMAGE
Question
what is the purpose of quotas?
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
Brief Explanations
- "to ban all imports from a country" describes an embargo, not a quota.
- "to ensure specific goods are not available to consumers" is not the purpose of quotas; quotas limit quantity, not make goods unavailable entirely.
- "to limit how much of a good can be imported" is the definition of an import quota, which restricts the quantity of a good that can be imported.
- "to keep prices on domestic goods low" is not the main purpose of quotas (tariffs or subsidies might relate more to price control of domestic goods).
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C. to limit how much of a good can be imported