Empirical Studies Show That Because Voluntary Export Quotas Are Typically

question 79

Multiple Choice

Empirical studies show that because voluntary export quotas are typically administered by exporting countries,foreign exporters tend to:

• A) Raise their export prices,thus capturing much of the quota's revenue effect
• B) Lower their export prices,thus losing much of the quota's revenue effect
• C) Raise their export prices,thus selling more goods overseas
• D) Lower their export prices,thus selling fewer goods overseas

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Definitions:

European Commission

The executive branch of the European Union, responsible for proposing legislation, implementing decisions, and managing the EU’s day-to-day operations.

Near Monopoly

A market structure in which a single company or entity dominates the market to an extent that is just short of a total monopoly.

Rule Of Reason

A doctrine used by courts to analyze the legality of certain business practices based on their economic impact, particularly in antitrust law.

Clayton Act

A U.S. legislation enacted in 1914 aimed at preventing anti-competitive practices in their incipiency, amending and bolstering the Sherman Act against monopolies.