Question

Governments design quotas to raise revenues and to generally provide a competitive advantage for domestic businesses.

a) True
b) False

Answer 1

False.Quotas are not designed to raise revenues or provide a competitive advantage for domestic businesses.

Step-by-step explanation:

False. Governments design quotas to limit or control the amount of imports coming into a country, not to raise revenues or provide a competitive advantage for domestic businesses. Quotas are implemented to protect domestic industries by reducing foreign competition.