Use the following to answer questions:
Figure: Foreign Trade Market
-If quotas on sugar were eliminated in the United States, domestic production of sugar would fall. Why is this a benefit in economic terms for the United States?
I. Resources are freed up that could be used more efficiently elsewhere.
II. It is beneficial because it allows foreign producers of sugar to earn income and thus those countries are better off.
III. U.S. consumers are able to enjoy increased consumer surplus because of the lower prices of imported sugar.
A) I and II only
B) I and III only
C) II and III only
D) I, II, and III

Question

Use the following to answer questions:
Figure: Foreign Trade Market 
-If quotas on sugar were eliminated in the United States, domestic production of sugar would fall. Why is this a benefit in economic terms for the United States?
I. Resources are freed up that could be used more efficiently elsewhere.
II. It is beneficial because it allows foreign producers of sugar to earn income and thus those countries are better off.
III. U.S. consumers are able to enjoy increased consumer surplus because of the lower prices of imported sugar.
A) I and II only 
B) I and III only 
C) II and III only 
D) I, II, and III

Quizplus · Accepted Answer

Elimination of quotas on sugar in the United States would lead to a fall in domestic production of sugar. This is beneficial in economic terms for the United States because:
I. Resources are freed up that could be used more efficiently elsewhere.
III. U.S. consumers are able to enjoy increased consumer surplus because of the lower prices of imported sugar. Option II is not a benefit for the United States.

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