In the context of international economics, 'Dumping' refers to:
A. Exporting goods with subsidies only
B. Selling goods abroad at a higher price
C. Selling goods abroad at a price lower than in the domestic market
D. Importing goods without tariffs
Answer: Option C
Solution (By JKSSB Mock Tests)
Dumping is the practice of selling a product in a foreign market at a price lower than the domestic price or below the cost of production, often considered an unfair trade practice.
Explanation:
Empirical studies often find 'excess sensitivity' of consumption to current income, suggesting that liquidity constraints, myopia or other factors cause departures from pure permanent-income behaviour.
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