When a firm sells its good abroad below the cost of producing the good the firm is
A) using the concept of comparative advantage.
B) dumping.
C) taking advantage of the infant industry argument.
D) taking advantage of absolute advantage.
B
You might also like to view...
All of the following are characteristics of the pure coordination game except
A) Nash equilibria exist at every outcome where players successfully coordinate. B) each player has a dominant strategy. C) the payoff for coordinating is higher than the payoff for not coordinating. D) the two general outcomes are that the players either coordinate with each other or they do not.
If sellers of good cars and sellers of lemons both offer a warranty on their cars, consumers will then be able to tell which cars are the lemons
Indicate whether the statement is true or false
Which statement is true?
A. Scarcity is simply a lack of money. B. The United States' society has been so affluent in the last 50 years that scarcity is only a minor problem. C. The economic problem refers to the problem of poverty. D. If scarcity did not exist there would be no need to economize.
The general formula for computing the desired stimulus is
A. AD shortfall - the multiplier. B. AD shortfall ÷ the multiplier. C. AD shortfall + the multiplier. D. AD shortfall × the multiplier.