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If a Foreign Country Imposes a Voluntary Export Restraint, Then

Question 80

Multiple Choice

If a foreign country imposes a voluntary export restraint, then the:


A) consumer surplus will be lower than would be so if the home country imposes a tariff.
B) producer surplus will be lower than would be so if the home country imposes a tariff.
C) foreign country will capture the area of government revenue collected with an equivalent tariff.
D) deadweight loss is smaller than would be so if the home country imposes a tariff.

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