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The United States Has an Absolute Advantage in Producing Sugar

question 269

Essay

The United States has an absolute advantage in producing sugar over all of the other sugar producing countries. Does this fact mean that we should not import any sugar from the other countries?


Definitions:

Equilibrium Quantity

The amount of products or services available and sought at the balance price, where the supplied quantity matches the demanded quantity.

Tax Revenue

The revenue collected by governments via taxes, which is allocated to finance public services and meet governmental duties.

Total Tax

The cumulative amount of taxes imposed by a government from various sources, including income, sales, and property taxes.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good that consumers are willing to buy at various prices.

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