JAMB - Economics (2023 - No. 48)

Which of the following would not be a reason for a government to impose a quota on imports?
To support strategic industry
To prevent dumping
To decrease tax revenue
Employment oppourtunity

Explanation

Reasons for the imposition of tariffs or restriction of trade are: To protect infant industries, generation of revenue, to prevent dumping, to improve balance of payment deficit, employment generation, to promote self-sufficiency, political motive, to protect strategic industries etc.

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