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:

Aggregate Demand (AD)

The total demand for all goods and services within an economy at different price levels, during a specific time period.

Unemployment Rate

The fraction of the working-age population that is currently unemployed and looking for a job.

Inflation Rate

The speed at which the overall price level of goods and services increases, leading to a decrease in purchasing power.

Price Index

A measurement that shows how the average price level of a selected set of goods and services has changed over time.