A Key Difference Between Import Quotas and Voluntary Export Restraints

question 110

Multiple Choice

A key difference between import quotas and voluntary export restraints (VERs) is that the

• A) domestic government administers the former, whereas the foreign government administers the latter.
• B) foreign government administers the former, whereas the domestic government administers the latter.
• C) one is a tax, whereas the other is a quantity limit.
• D) one raises the price of the imported product involved, whereas the other one does not.