In the Following Offer Curve Diagram, OC_A Is the Free-Trade

question 31

Multiple Choice

In the following offer curve diagram, OC_A is the free-trade offer curve of country A, OC_B is the free-trade offer curve of country B, and OC'_A (which starts at the origin O, goes to point M and then comes back horizontally to point Y') is the offer curve of country A when it has a restrictive trade policy instrument in place (while country B continues with free trade) . In this situation, the restrictive instrument that country A has employed is __________, and the resulting equilibrium position E' is __________ equilibrium position.

• A) a "voluntary" export restraint (VE
• R) on its exports to country B; an unstable
• B) a "voluntary" export restraint (VE
• R) on its exports to country B; a stable
• C) an import quota; an unstable
• D) an import quota; a stable

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Definitions:

Purchase Process

The series of steps that a customer goes through when deciding to buy a product or service, from recognizing a need to post-purchase evaluation.

Memory

The ability to store, retain, and subsequently retrieve information.

Internal Locus

Internal Locus refers to a belief that individuals control their own destiny and outcomes are a result of their actions rather than external factors.

External Locus

A belief system or psychological orientation that attributes success or failure to external factors beyond one's control.