When a Foreign Firm Sells Its Exports at a Lower

question 144

Multiple Choice

When a foreign firm sells its exports at a lower price than its cost of production, the firm is

• A) imposing an economies of scale cost.
• B) dumping.
• C) avoiding a tariff.
• D) competing in an infant industry.

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Definitions:

Equivocation

The misleading use of a term with more than one meaning or sense, causing a fallacy in argumentation due to ambiguous language.

Appeal to Ignorance

A logical fallacy in which it is claimed that a proposition is true because it has not yet been proven false, or vice versa.

Burden of Proof

The obligation to prove one's assertion or argument, typically resting on the party who makes a claim in a dispute.

Fallacy

A deceptive, misleading, or false notion, belief, or argument; often, a statement or argument based on a false or invalid inference.