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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
Quotas are trade restrictions. They set a limit on the quantity of a good that can be imported. Banning all imports (first option) is an embargo. Ensuring goods aren't available (second option) is not the goal as quotas allow some import. Keeping domestic prices low (fourth option) is more related to subsidies or domestic production policies. The key is the limit on import quantity.
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to limit how much of a good can be imported