Question

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

Explanation:

Quotas are trade restrictions that limit the quantity of goods imported. By reducing foreign competition, domestic producers can sell more of their goods.

• Option 1: Quotas are about imports, not exports.
• Option 2: Quotas don't lower domestic good costs; they may increase prices due to less competition.
• Option 3: Quotas limit imports, not the number of domestic producers.
• Option 4: With fewer imports (due to quotas), domestic producers can sell more domestic goods.

Answer:

Quotas facilitate the sale of more domestic goods.