When a Firms "Dumps" Some of Its Products in Another

question 179

Multiple Choice

When a firms "dumps" some of its products in another country, it

• A) creates an environmental hazard in the receiving country.
• B) sells its products abroad at a price lower than it costs to produce the goods.
• C) increases the total level of employment in the receiving country.
• D) is specializing according to comparative advantage.

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Definitions:

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given time period.

Opportunity Cost

The relinquishment of possible advantages from alternate options upon making a choice.

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive, measured by the area above the supply curve and below the price level.

Demand

The desire to purchase goods and services backed by the ability and willingness to pay a certain price.