Some Countries Export Products at Prices Below the Cost of Production

question 64

Multiple Choice

Some countries export products at prices below the cost of production or the price charged in the domestic market.This practice is called:

• A)cream skimming.
• B)import substitution.
• C)monopoly pricing.
• D)dumping.
• E)arbitrage.

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Definitions:

Medicaid

A social health care program for families and individuals with low income and limited resources in the United States.

Marginal Tax Rate

The rate at which the last dollar of a person's income is taxed, demonstrating how much tax the individual will pay on an additional dollar of income.

Taxable Income

The portion of an individual's or corporation's income that is subject to taxes by the government.

Taxes

Compulsory charges imposed on individuals or entities by governments used to fund public services and government obligations.