What Is the Main Difference Between a Tariff and an "Equivalent

question 106

Multiple Choice

What is the main difference between a tariff and an "equivalent" voluntary export restriction (VER) ? A tariff

• A)allows the government of the importing country to appropriate the extra market value of the imported good,but with a VER the extra market value accrues to the good's foreign producers.
• B)allows the extra market value of the good to accrue to the supplier,but a VER allows the extra market value to be appropriated by the government of the importing country.
• C)restricts free trade between two countries and a VER does not.
• D)keeps the price in the importing country higher than it would otherwise be; a VER does not.
• E)allows the importing country to protect wages and other factor incomes in the affected industry,while a VER does not.

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