What is the primary purpose of an import quota?

CA Foundation · Business Economics · RTP · September 2024
What is the primary purpose of an import quota?
(A) A. To encourage domestic production.
(B) B. To reduce government spending.
(C) C. To limit the quantity of imports.
(D) D. To increase the trade deficit.

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. To limit the quantity of imports.

Topics: International Trade

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