Consider the following statements:
1. Import quotas are generally regarded as more restrictive than import tariffs
2. A ‘voluntary’ export restraint(VER) is a quota on exports imposed by the exporting country’s government
3. Import quotas potentially benefit consumers via lower prices
4. Import quotas benefit local producers of import-competing goods by limiting competition
Which among the above statements is / are correct?

Answer: [B] Only 1, 2 & 4

The third statement is incorrect. Import quota will raise the prices in domestic markets.

This question is a part of GKToday's Integrated IAS General Studies Module