Assertion: Quotas specify the quality of goods which can be imported.

Reasoning: Quotas restrict imports and, therefore, protect the domestic firms from foreign competition.

Assertion (A) is not true but Reasoning (R) is correct.

Tariffs are a tax on imported goods; they make imported goods more expensive and discourage their use. Quotas specify the quantity of goods which can be imported. The effect of tariffs and quotas is that they restrict imports and, therefore, protect the domestic firms from foreign competition.