Question

The United States is not competitive with Brazil in sugar production partly because:

Question 23 options:

	a) the United States does not focus upon sugar production.
	b) the opportunity cost of land suitable to sugar production in Brazil is relatively high.
	c) Brazil does not focus upon sugar production.
	d) the opportunity cost of land suitable for sugar production in the United States is relatively high.

If the U.S. government wanted to use strategic trade protectionism for U.S.-produced fertilizer, it would:

Question 24 options:

	a) place high taxes on foreign-made fertilizer.
	b) place a trade quota on foreign-made fertilizer.
	c) place a tax or put a limit on the exports of U.S. fertilizer.
	d) subsidize U.S. producers of fertilizer.

The paradox of trade restrictions on countries with child labor is that:

Question 25 options:

	a) children from those countries are actually more efficient than the adults.
	b) these restrictions aim to reduce child labor, but because they make the countries poorer, they actually cause more child labor.
	c) restrictions on trade cause losses in consumer surplus.
	d) children can be hired at lower wages than adults.

Answer 1

1-The United States is not competitive with Brazil in sugar production because the average US climate is not ideal for sugar production.

So option B is the correct statement.

2-if the US government wanted to use strategic trade protectionism for US produced fertilizer it would place a tax or put a limit on the export of US fertilizer.

Strategic trade protectionism makes the domestic country better off at the expense of foreign countries.

So option C is the correct statement.

3-The paradox of trade restrictions on countries with child labor is that these restrictions aim to reduce child labor but because they make the countries poorer, they actually cause more child labor.

So option B is the correct statement.