Answer the following questions true (T) or false (F)
1. A voluntary export restraint is an agreement negotiated between two countries that places a numerical limit on the quantity of a good that can be imported by one country from the other country.
2. A tariff is the same as a quota.
3. Selling a product at a price below its cost is known as dumping.
1. TRUE
2. FALSE
3. TRUE
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Financial intermediaries reduce risk by
A) investing in a large number of projects with independent returns. B) gaining expertise in evaluating and monitoring investments. C) investing in a small number of projects with independent returns. D) limiting the diversity of their investment portfolios.
In 2008, the current account balance was -706 billion and the capital and financial account balance was +711 billion. Therefore, the official settlements account balance was ________ and the balance of all payments accounts was ________
A) negative; negative B) positive; positive C) not enough information to determine; most likely negative D) -5; zero E) +5; zero
Which of the following is not a reason why the Industrial Revolution occurred when and where it did?
A) The British government was able to more easily seize wealth. B) Institutional changes by the British government helped protect wealth. C) The British government was committed to upholding private property rights. D) The British government was able to eliminate arbitrary increases in taxes.
Because the benefits derived from an activity decline as it is expanded, it is generally wise to
a. undertake all actions that generate benefits. b. expend the smallest possible amount of resources on this type of activity. c. avoid any activity with this characteristic. d. stop the activity before perfection is reached..