Which of the following statements is NOT true about the sugar quota imposed by the United States government?
A) Although sugar consumers are harmed by the quota, few of them even know of the quota's existence.
B) Sugar consumers wouldn't spend much time or effort to oppose the sugar quota even if they know about the quota.
C) Sugar producers are rationally informed and would seek to sustain the quota.
D) The quota is imposed to protect both sugar consumers and producers.

Question

Quizplus · Accepted Answer

The statement "The quota is imposed to protect both sugar consumers and producers" is not true. The quota is primarily imposed to protect domestic sugar producers by limiting competition from foreign sugar imports. While it may benefit some sugar producers, it harms sugar consumers by keeping prices artificially high.

Which of the Following Statements Is NOT True About the Sugar