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Recall the Application About U

Question 42

Multiple Choice

Recall the Application about U.S. candy manufacturers shifting production to Mexico and other countries
due to high sugar prices in the U.S. to answer the following question(s) . According to the Application, the
U.S. government protects the domestic sugar industry from foreign competition by restricting sugar
imports, keeping the price of sugar in the U.S. artificially high. In 2003, the cost of sugar was $0.06 per
pound in Mexico and $0.21 per pound in the U.S.
-According to this Application, by protecting the domestic sugar industry from foreign competition, the U.S. government is essentially


A) protecting an industry in which the U.S. has a comparative advantage in production.
B) guaranteeing that domestic sugar prices will remain competitive with international sugar prices.
C) ensuring that the supply of sugar in the U.S. will remain high.
D) sacrificing jobs in one domestic industry for jobs in another domestic industry.

Correct Answer:

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