Which of the Following Statements Is False

question 262

Multiple Choice

Which of the following statements is false?

• A) If the United States imposes a tariff on Japanese car imports, the price of cars in the United States is likely to increase.
• B) If the United States imposes a quota on Japanese car imports, the price of cars in the United States is likely to increase.
• C) If Japan imposes a subsidy on car exports to the United States, the price of cars in the United States is likely to increase.
• D) If Japan imposes a "voluntary export restraint" on car exports to the United States, the price of cars in the United States is likely to increase.

---

Definitions:

Price Elasticity

An indicator of the degree to which demand for a product is affected by variations in its price, reflecting consumer sensitivity to price fluctuations.

Rock Concert

A live music performance featuring rock music by one or more artists or bands.

Tickets

Documents or electronic vouchers that grant the holder the right to enter an event, travel on public transport, or participate in an activity.

Reservation Price

The maximum price a buyer is willing to pay or the minimum price a seller is willing to accept for a good or service.