Dumping typically occurs because
A) the exporting country raises its prices to increase profits.
B) the exporting country usually is experiencing a recession and has excess production.
C) the importing country is experiencing a recession.
D) the importing country has assessed significant tariffs.
Answer: B
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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
If a currency is allowed to move freely until it violates economic fundamentals, that currency is said to have
A) a managed float. B) a free floating system. C) a currency board. D) a stable basket.
The World Bank estimates that about ____ of the planet lives below $1.90 a day per person, and ____ lives on less than $3.10:
A. 1%; 35%. B. 13%; 50%. C. 35%; 50%. D. 13%; 35%.
Suppose a nation is currently producing at a point inside its production possibilities frontier. We know that
a. the nation is producing beyond its capacity, so inflation will occur. b. the nation is not using all available resources or is using inferior technology or both. c. the nation is producing an efficient combination of goods. d. there will be a large opportunity cost if the nation tries to increase production of any good.