Which of the Following Is Not a Type of Trade

question 96

Multiple Choice

Which of the following is not a type of trade restriction?

• A)low-interest loans to foreign buyers
• B)export subsidies for domestic firms
• C)domestic content requirements
• D)restrictive health and safety standards
• E)economies of scale

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Definitions:

Perfect Price Discrimination

Perfect price discrimination occurs when a seller charges each buyer their maximum willingness to pay, extracting all consumer surplus.

Total Profits

The sum of earnings from a business operation, after all expenses have been deducted from total revenue.

Price-discriminating Monopolist

A monopolist that charges different prices to different consumers or groups of consumers for the same product, not based on cost differences.

Market

Any structure that allows buyers and sellers to exchange any type of goods, services, and information.