Quotas are designed to:
A) restrict export of domestic goods to foreign markets.
B) protect domestic producers from higher sales tax.
C) increase foreign demand for domestic products.
D) increase domestic demand for foreign products.
E) protect domestic producers from foreign competition.

Question

Quizplus · Accepted Answer

Quotas are typically used to protect domestic producers from foreign competition by limiting the amount of imports that can enter the domestic market. This is achieved by setting a maximum allowed quantity of imports or by imposing restrictions on the countries that are allowed to export to the domestic market.

Quotas Are Designed To