A Voluntary Export Restraint Is an Agreement Negotiated by Two

question 135

Multiple Choice

A voluntary export restraint is an agreement negotiated by two countries that places ________ that can be imported by one country from another country.

• A)a tax on goods
• B)a minimum quantity of a good
• C)quality standards on goods
• D)a numerical limit on the quantity of a good

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Definitions:

Producer Surplus

The difference between what producers are willing to accept for a product and the amount they actually receive.

Total Revenue

The overall amount of money generated by a firm from the sale of its goods and services, calculated as the unit price multiplied by the quantity sold.

Total Cost

The sum of the fixed cost and the variable cost of producing a given quantity of output.

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive, often depicted as an area on a graph.