If Australia Is Better Than the US at Producing Wheat

question 60

Multiple Choice

If Australia is better than the US at producing wheat, but the US is better than Australia at producing cars, the US should:

• A)impose a tariff on Australian wheat in order to protect jobs in the US car industry
• B)sell cars to Australia, and buy Australian wheat
• C)subsidise its wheat industry so that it can compete with Australian wheat
• D)put a quota on the amount of Australian wheat imported