Which of the Following Is Not Correct Regarding Dumping

question 137

Multiple Choice

Which of the following is not correct regarding dumping?

• A)In the country where products are dumped, consumer surplus grows as a result of the dumping.
• B)Dumping involves the selling of a product by foreign producers at a price lower than that in their own countries.
• C)Critics of dumping recommend applying a tariff as the correct antidumping measure.
• D)A major difficulty with dumping by firms in other countries is that it drives up prices to the domestic consumer.
• E)Predatory dumping is often aimed at driving domestic producers out of business.

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Definitions:

Widgets

A generic term used to refer to a hypothetical manufactured product or any small device or gadget.

Fixed Costs

Expenses that do not change with the volume of production or sales, such as rent, salaries, and insurance.

Opportunity Costs

The value of the next best alternative foregone as a result of making a decision.

Production Capacity

The maximum amount of goods or services a facility can produce over a given period under normal working conditions.