What is a voluntary export restraint (VER)?
What will be an ideal response?
A voluntary export restraint (VER) is a scheme under which an exporting country voluntarily limits its exports.
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An essential characteristic of a perfectly competitive market is:
A. buyers and sellers have no control over the market price. B. sellers are selling unique products. C. buyers have complete control over the market price and sellers have none. D. sellers have complete control over the market price and buyers have none.
Which of the following is a key difference between the economic activities of government and those of private firms?
A. Private firms face the constraint of scarcity; government does not. B. Government focuses primarily on equity; private firms focus only on efficiency. C. Private economic activities create externalities; government activities do not. D. Government has the legal right to force people to do things; private firms do not.
A depreciation of the U.S. dollar on the foreign exchange market will
a. make U.S. exports cheaper to foreigners. b. make imports less expensive for U.S. consumers. c. make U.S. exports more expensive for foreign consumers. d. probably cause the United States to run a capital account surplus in the long run.
Suppose a consumer with an income of $100 is faced with Px = 1 and Py = 1/2. What is the market rate of substitution between good X (horizontal axis) and good Y (vertical axis)?
A. -1.0 B. -2.0 C. -4.0 D. 0.50