Assume That a VER (Voluntary Export Restraint) Is Imposed on an Imported

question 62

Multiple Choice

Assume that a VER (voluntary export restraint) is imposed on an imported product. The difference between the domestic price and the world price is captured by

• A) the government.
• B) foreign exporters.
• C) domestic consumers.
• D) domestic workers.

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Definitions:

Variable Costs

Costs that change in proportion to the level of goods or services produced by a business.

Rate of Return

A measure of the profitability or efficiency of an investment, expressed as a percentage of the original investment.

Variable Cost Concept

A principle in economics that refers to costs that vary directly with the level of production or service activity.

Rate of Return

A measurement of the gain or loss on an investment over a specific period, expressed as a percentage.