Antidumping duties applied to imported goods ?
Correct answer: B. result in decreases in consumer surplus for domestic households
- A. are abolished by the World Trade Organization
- B. result in decreases in consumer surplus for domestic households
- C. are imposed by industrial countries but not developing countries
- D. result in lower-priced goods for domestic consumers
Explanation
Antidumping duties raise the domestic price of imported goods, reducing consumers' purchasing power and consumer surplus. They are permitted under WTO rules and are used by both developed and developing countries.
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