USSugar Import Quotas Have Existed for More Than Fifty Years

question 99

Multiple Choice

U.S.sugar import quotas have existed for more than fifty years and preserve about half of the U.S.sugar market for domestic producers.Why does the United States continue to have these quotas?

• A)to reduce competition for its domestic sugar industry
• B)to increase the cost of sugar
• C)to control the supply and demand for sugar
• D)to support a mass market for sugar
• E)to improve the promotion of sugar

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Definitions:

Equity Method

An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and subsequently adjusted to reflect the investor’s share of the investee’s net income or loss.

Initial Value Method

An accounting approach that records investments at their original purchase cost, without adjusting for changes in market value.

Partial Equity Method

An accounting technique used for investments where the investor has significant influence but does not fully control the investee, recognizing income proportionate to the level of ownership.

Equity Method

An accounting technique used to record investments in which the investor has significant influence but no control over the investee, recognizing the investor's share of the investee's profits and losses.