In the context of international economics, 'Dumping' is considered: MCQ with Answer and Explanation

In the context of international economics, 'Dumping' is considered:
A. A tariff barrier
B. An unfair trade practice of selling below cost or domestic price in foreign markets
C. A fair trade practice
D. A form of export promotion subsidy only
Answer: Option B
Solution (By JKSSB Mock Tests)
Dumping involves selling a product in a foreign market at a price lower than the domestic price or below the cost of production, often subject to anti-dumping duties.

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Practice More Economy Set 1 Questions

Question #1
Which of the following is a characteristic of the 'Sudden Stop' literature?
A. Only trade shocks matter
B. Capital-flow reversals are always gradual and benign
C. Abrupt reversals of capital inflows can cause large real depreciations, output collapses and financial crises
D. Capital flows never reverse

Correct Answer: Option C


Explanation:
Sudden-stop models analyse the macroeconomic and financial consequences of large and abrupt reversals in capital inflows, which often trigger currency crises, credit contractions and sharp recessions.

This question belongs to: Economy GK Economy Set 1
Question #2
In the context of Indian planning, the first Five Year Plan was based on which model?
A. Harrod-Domar model
B. Lewis model
C. Solow model
D. Mahalanobis model

Correct Answer: Option A


Explanation:
The First Five Year Plan (1951-56) was based on the Harrod-Domar model which emphasised the role of savings and investment in economic growth.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is NOT a component of the Human Development Index?
A. Education
B. Gender equality
C. Life expectancy at birth
D. Per capita income

Correct Answer: Option B


Explanation:
HDI has three dimensions: health (life expectancy), education (mean and expected years of schooling) and standard of living (GNI per capita). Gender equality is measured by separate indices like GII.

This question belongs to: Economy GK Economy Set 1