Which of the Following Is the Best Example of a Voluntary

question 59

Multiple Choice

Which of the following is the best example of a voluntary export restraint?

• A)a limit set by the Japanese government on the number of sports utility vehicles that the United States can import from Japan
• B)a subsidy granted by the U.S.government to domestic sports utility vehicle manufacturers so they can compete more effectively with foreign sports utility vehicle manufacturers
• C)a tax placed on all sports utility vehicles sold in the domestic market
• D)a $5,000 per-car fee imposed on all sports utility vehicles imported into the United States

---

Definitions:

Pure Competition

A market structure characterized by a large number of small firms, similar products, and very little control over price.

Monopolistic Competition

A market structure in which many firms sell products that are similar but not identical, allowing for significant differentiation and competition.

Excess Capacity

refers to a situation where a firm or economy can produce more goods than currently demanded, often leading to unused resources.

Least-cost Output

The level of production at which a firm can produce a specified quantity of output at the lowest possible cost.