Question

how do quotas help domestic producers?
quotas facilitate the sale of more domestic goods.
quotas facilitate increased exports of domestic goods.
quotas limit the number of producers that compete in a sector.
quotas lower the cost of domestic goods.

Explanation:

Quotas are trade restrictions that limit the quantity of imported goods. By limiting foreign competition (producers), domestic producers face less competition, which helps them. Let's analyze each option:

• "Quotas lower the cost of domestic goods": Quotas often raise domestic goods' prices, not lower.
• "Quotas limit the number of producers that compete in a sector": This is correct. Quotas restrict imports, so fewer foreign producers compete, aiding domestic ones.
• "Quotas facilitate increased exports of domestic goods": Quotas are about imports, not directly exports.
• "Quotas facilitate the sale of more domestic goods": While related, the key mechanism is limiting foreign producers (competition), making the second option more accurate about how they help domestic producers.

Answer:

Quotas limit the number of producers that compete in a sector.