When a Product Is Sold in a Foreign Country at a Price

question 156

Multiple Choice

When a product is sold in a foreign country at a price that is lower than the cost of production, it is called

• A) dumping.
• B) an escape clause.
• C) a countervailing duty.
• D) voluntary export restriction.

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Definitions:

Public Good

A public good is a commodity or service that is provided without profit to all members of a society, either by the government or a private individual or organization.

Willingness To Pay

The maximum amount an individual is prepared to expend on a good or service, reflecting their valuation of it.

Horizontal Summation

A method used in economics to describe the total demand or supply in a market by adding together individual demands or supplies at the same price level across different entities.

Vertical Summation

A method used in economics to aggregate individual demand curves to find total market demand for a good.