If the United States negotiates a voluntary export restraint with international sugar producing nations,then
A) U.S. sugar buyers pay a lower price for sugar.
B) U.S. sugar producers produce a smaller quantity.
C) imports of sugar increase.
D) the U.S. government collects less revenue than if it imposed a tariff on sugar.
E) the foreign governments collect more revenue than if a tariff is imposed on sugar.

Question

Quizplus · Accepted Answer

Voluntary export restraints (VERs) lead to a reduction in the quantity of goods imported, which in this case would mean the U.S. government collects less revenue than it would from tariffs on sugar imports. Tariffs are direct taxes on imported goods paid to the importing country's government, generating revenue. In contrast, VERs do not involve direct payments to the government, hence less revenue.

If the United States Negotiates a Voluntary Export Restraint with International