Suppose that the country of Pacifica imposes a quota on bananas. The reason that the government imposed this trade restriction could be

Question

Quizplus · Accepted Answer

Quotas are typically imposed for protective measures, such as protecting domestic industries from foreign competition. In this case, lobbying from banana farmers in Pacifica would be a plausible reason for the government to impose a quota, as it would protect domestic banana farmers from being undercut by cheaper imports.

Suppose That the Country of Pacifica Imposes a Quota on Bananas