A Voluntary Export Restraint Is an Agreement Negotiated Between Two

question 99

True/False

A voluntary export restraint is an agreement negotiated between two countries that places a numerical limit on the quantity of a good that can be imported by one country from the other country.

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Definitions:

Excise Tax

A tax usually imposed on specific goods such as tobacco, alcohol, and gasoline, aimed at reducing consumption or raising revenue.

Supply Curve

A graphical representation of the relationship between the price of a good or service and the amount of it that producers are willing to supply at that price.

Elastic Demand

A condition where the quantity demanded of a good or service significantly changes in response to a change in its price.

Efficiency Loss

The decrease in economic effectiveness that occurs when a good or service does not reach or cannot reach its equilibrium state.