Question

what is the government’s aim in setting quotas?
○ to create more competition in the market
○ to increase sales of domestic goods
○ to keep tariffs high
○ to limit export of domestic goods

Explanation:

Quotas are a form of trade restriction. They limit the quantity of goods that can be imported. By reducing imports, domestic producers face less foreign competition. This allows domestic producers to sell more of their goods, thus increasing the sales of domestic goods. Creating more competition in the market would be the opposite of what quotas do (as they limit foreign competition). Quotas are not directly related to keeping tariffs high (tariffs are taxes on imports, quotas are quantity limits). Quotas are usually on imports, not on limiting the export of domestic goods.

Answer:

to increase sales of domestic goods