A quota will sometimes encourage exporters to lower the quality of their product in order to export less.

Name: A quota will sometimes encourage exporters to lower the quality of their product in order to export less.
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Question

Quizplus · Accepted Answer

A quota typically encourages exporters to increase the quality of their products because it limits the quantity they can export, so they aim to maximize profits by selling higher-value items within the quota limit.

A Quota Will Sometimes Encourage Exporters to Lower the Quality