Governments Choose to Use Voluntary Export Restraints Rather Than Tariffs

question 49

Multiple Choice

Governments choose to use voluntary export restraints rather than tariffs because:

• A)voluntary export restraints have the potential to generate higher revenue.
• B)voluntary export restraints do not generate any welfare loss in the importing country.
• C)tariffs more obviously violate the international rules of the WTO.
• D)the increase in the price of the imported good in the domestic market is much lower in case of VERs than tariffs.

---

Definitions:

Flynn Effect

The observed substantial and long-sustained increase in both fluid and crystallized intelligence test scores measured in many parts of the world over the 20th century.

Gifted Child

A child who exhibits a significantly higher level of intellectual, creative, or artistic ability compared to peers of the same age.

Genius-Level Contributions

Exceptionally high-value work or insight that significantly advances a particular field.

Eminence

A high status or reputation achieved through success, excellence, or influence in a particular field or area.