Which of the following statements concerning a voluntary export restraint is false?

Question

Quizplus · Accepted Answer

Voluntary export restraints place a limit on the quantity of a certain good that a foreign country can export to another country. By limiting imports, it benefits domestic producers by reducing import competition and raising the domestic price of the good. This, in turn, harms consumers who have to pay higher prices for the good. Therefore, statement B is false as it suggests that voluntary export restraints benefit consumers.

Which of the Following Statements Concerning a Voluntary Export Restraint