When one country "dumps" some of its products in another country, it
A) increases the aggregate level of employment in the importing country, thereby depressing that nation's market wages.
B) also exports new technology to the importing nation and thereby indirectly boosts the importing nation's real GDP.
C) sells its products abroad at a price lower than the price in the home market or lower than the cost of production.
D) also exports pollution-causing technologies and thereby creates environmental hazards in the receiving country.
Answer: C
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Gains from trade can be realized if each country specializes in the production of a good in which it has a comparative advantage
a. True b. False Indicate whether the statement is true or false
The Consumer Price Index (CPI):
A. does not suffer from substitution bias because the basket used to measure prices changes every year. B. answers the question, "How much more does it cost today to buy the same basket of goods and services that were purchased at some fixed time in the past?" C. understates the impact of price changes. D. is calculated using a basket of goods and services adjusted annually by government statisticians.