What are quotas designed to control?

Quotas are specific limits set by governments or trade organizations that restrict the quantity of goods that can be imported or exported during a given time period. This regulatory mechanism is designed to control the flow of goods across borders, often to protect domestic industries and markets from excessive foreign competition. By establishing quotas, a country can manage its trade balance, support local producers, and ensure that domestic markets are not overwhelmed by foreign products.

In this context, the other options do not accurately describe the primary function of quotas. While product quality might be regulated through different mechanisms, such as standards or inspections, quotas do not directly impact product quality. Similarly, the sale price of goods can be influenced by market forces and regulations, but not specifically controlled by quotas. Lastly, while employee numbers in an industry are subject to labor laws and regulations, quotas themselves do not serve to regulate the workforce directly. Thus, the correct understanding aligns with the role of quotas in managing imports and exports.