The United States' Foreign Corrupt Practices Act (FCPA)does Which of the Following

question 23

Multiple Choice

The United States' Foreign Corrupt Practices Act (FCPA) does which of the following?

• A)Makes bribes tax deductible
• B)Prohibits U.S.companies from trading with countries known to bribe
• C)Allows bribing to be commonplace
• D)Makes it illegal for publicly held companies to bribe foreign officials
• E)Makes it illegal for privately held firms to bribe foreign officials

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Definitions:

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing the benefit consumers receive.

Producer Surplus

The difference between what producers are willing and able to supply a good for and the price they actually receive, measuring the benefit to producers.

Total Surplus

The total net gain to society from creating and consuming a product or service, encompassed by the combination of consumer and producer surplus.

Deadweight Loss

An inefficiency in the economy that results when the market equilibrium for a good or service isn't attained or is unattainable.