Voluntary Restraint Agreements Are

question 187

Multiple Choice

Voluntary restraint agreements are

• A) a type of tariff in which the tax is a fixed amount per unit of good imported.
• B) a type of tariff in which the tax is based on the value of the good.
• C) a type of quota that actually benefits the firms facing the restrictions.
• D) a type of quota agreed to "voluntarily" in order to prevent more severe protection of another type.

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Definitions:

Underpriced

A term used to describe a security or any financial instrument that is selling for a price believed to be below its true intrinsic value.

Well-diversified Portfolio

An investment portfolio that spreads risk by holding a wide variety of assets, potentially across different asset classes, sectors, and geographies.

Unsystematic Risk

Refers to the risk associated with specific entities, such as companies or industries, that can be mitigated through diversification.

Efficient Frontier

A concept in portfolio theory that represents the set of portfolios offering the highest expected return for a given level of risk.