What is dumping and why would firms engage in it?
What will be an ideal response?
Dumping is when the price charged in a foreign market is either lower than the price charged in the home market or lower than the production cost. Reasons for dumping include price discrimination and predatory pricing.
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Which is an example of "capital"?
A) A carpenter's skills B) A singer's voice C) A judge's unblemished reputation D) A blast furnace E) All of the above.
When the demand for a good is inelastic and its price increases, the total revenue from the sale of the good will ________
A) increase B) decrease initially and then increase C) decrease D) not change
Serious concern for deregulation began to appear in Congress in the 1970s.
Answer the following statement true (T) or false (F)
The exchange rate is the
A. price of one currency in terms of another. B. price of imports in terms of exports. C. nominal price of a currency in terms of gold. D. reciprocal of the terms of trade.