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

Explanation:

A quota in trade is a restriction that limits the quantity of a good that can be imported. Banning all imports is an embargo, not a quota. Quotas don't aim to make goods unavailable (they limit quantity, not ban availability) and don't directly keep domestic prices low (tariffs or subsidies might relate more to price control). So the correct option is the one about limiting import quantity.

Answer:

C. to limit how much of a good can be imported (assuming the options are labeled A, B, C, D with C being "to limit how much of a good can be imported")