Under the VER of the 1980s, Japan's automakers received:
a. additional quota rents of about $2.2 billion.
b. approximately 10% lower prices.
c. censure by the WTO for failing to behave in a competitive manner.
d. wage concessions from their U.S. employees to keep plants open in the United States.
Answer: a. additional quota rents of about $2.2 billion.
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Jesse wants to maximize her net gains from working. She estimates that the 12th hour of work per week yields $10 of additional monetary and nonmonetary benefits, but involves $9 in additional costs. She should:
a. work for only 11 hours per week, since the 12th hour yields such a small net gain. b. work the 12th hour only if she can negotiate a higher wage for that hour. c. definitely work the 12th hour since doing so raises her net gain from working. d. work for only 11 hours since it doesn't make sense to undertake work that has positive costs associated with it
One example of gradualism is taking place in
a. China b. the United Nations c. New Zealand d. Japan e. France