One of the Best Known Examples of ___________ Is the Agreement

question 51

Multiple Choice

One of the best known examples of ___________ is the agreement between the United States and Japan, under which Japanese producers promised to limit their auto imports to the United States as a way of defusing growing trade tensions.

• A)voluntary export restraint
• B)import quotas
• C)local content requirement
• D)ad valorem tariffs
• E)administrative trade initiatives

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Definitions:

Subsidy Payments

Financial support given by a government or organization to lower the price of a product or service or to support a business or economic sector.

Quantity Supplied

Quantity supplied refers to the total amount of a product or service that producers are willing and able to sell at a given price over a specified period.

Per Unit Tax

A tax levied on goods that is fixed in amount for each unit produced or sold.

Consumer Surplus

The gap in the total funds consumers are willing and financially prepared to allocate for a good or service, versus the funds actually allocated.