Question

Both tariffs and quotas are typically used for what purpose?

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Group of answer choices

lowering the prices of goods for domestic consumers

protecting domestic markets from foreign competition

improving the standard of living of domestic populations

reducing the costs of production for domestic businesses

Answer 1

Correct answer: protecting domestic markets from foreign competition.

Explanation: Tariffs (taxes on imports) and quotas (limits on import quantities) both reduce foreign competition by making imported goods more expensive or less available, thereby protecting domestic producers. They typically raise — not lower — domestic prices and do not directly reduce production costs or necessarily improve overall living standards.