This question is incomplete, here´s the complete question.
What is the purpose of quotas?
- to ban all imports from a country
- to ensure specific goods are not available to consumers
- to limit how much of a good can be imported
- to keep prices on domestic goods low
Answer: to limit how much of a good can be imported
Explanation:
Quotas are meant to establish boundaries on the number of specific goods that are allowed to be lawfully imported into the country throughout a distinct period of time. In that, quotas are similar embargoes, except quotas don´t have explicit political purposes as embargoes do.
A Fixed quota would be a maximum amount not to be surpassed, while a tariff rate surcharge allows it, but with a higher duty.
