A quota will encourage exporters to increase the quality of the goods that they are exporting in order to reduce the revenue they receive from exports.

Question

Quizplus · Accepted Answer

A quota limits the quantity of goods that can be exported or imported, not the revenue. Exporters might increase quality to compete more effectively within the limited quantity allowed, but the statement incorrectly suggests the goal is to reduce revenue from exports.

A Quota Will Encourage Exporters to Increase the Quality of the Goods