Quotas and tariffs both serve the purpose of
A) increasing foreign trade.
B) restricting foreign trade.
C) causing domestic producers to lose revenues.
D) lowering prices on imported goods.

Question

Quizplus · Accepted Answer

Both quotas and tariffs are protectionist measures aimed at restricting foreign trade. Quotas limit the quantity of a particular imported good that can enter a country, while tariffs are taxes imposed on imported goods. Both measures increase the cost of importing goods, making them less attractive to consumers and promoting domestic production.

Quotas and Tariffs Both Serve the Purpose of