Which of the Following Is Not True of Dumping

question 139

Multiple Choice

Which of the following is not true of dumping?

• A)In the country where products are dumped,consumer surplus grows as a result of the dumping.
• B)Dumping involves the selling of a product by foreign producers at a price lower than that in their own countries.
• C)Critics of dumping recommend applying a tariff as a correct antidumping measure.
• D)A major difficulty with dumping by firms in other countries is that it drives up prices for the domestic consumer.
• E)Predatory dumping is often aimed at driving domestic producers out of business.

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Definitions:

Equity

Fairness; everyone gets his or her fair share. Since people can disagree about what is “fair,” equity is not as well defined a concept as efficiency.

Rational Decision

The choice made by logically considering all available information, potential costs, and benefits to achieve the optimal outcome.

Bounded Rationality

A concept suggesting that decision-making is limited by the information available, cognitive limitations of the mind, and the finite amount of time available to make a decision.

Opportunity Costs

The potential benefits or profits lost when choosing one alternative over another, representing the cost of forgone opportunities.