Which of the Following Statements Is True About Voluntary Export

question 57

Multiple Choice

Which of the following statements is true about voluntary export restraints (VERs) ?

• A)VERs benefit consumers by limiting import competition.
• B)VERs reduce the domestic price of an imported good.
• C)When imports are limited to a low percentage of the market by a VER,the price is bid up for that limited foreign supply.
• D)Foreign producers agree to VERs because they fear economic instability in the world economy.
• E)VERs negatively affect domestic producers by increasing import competition.

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Definitions:

Melanin

A pigment found in the skin, hair, and eyes that gives them color and offers protection against ultraviolet radiation.

Arrector Pili

Small muscles attached to hair follicles in mammals, contraction of which causes the hair to stand upright, producing goosebumps.

Hair Follicle

The skin organ that produces hair, consisting of a shaft, root, and bulb, and is connected to sebaceous glands.

Sebaceous Gland

Gland of the skin, usually associated with a hair follicle, that produces sebum.