An import quota directly restricts ________ and is designed to protect domestic ________.
A)exports; consumers only
B)exports; producers only
C)imports; consumers only
D)imports; producers only
E)imports; producers and consumers

Question

Quizplus · Accepted Answer

An import quota is a restriction on the quantity of a certain good that can be imported into a country. It directly restricts imports, not exports. The purpose of an import quota is to protect domestic producers from foreign competition, not consumers. Therefore, the correct choice is D) imports; producers only.

An Import Quota Directly Restricts ________ and Is Designed to Protect