(Last Word) The U.S. sugar program has:
A. improved the world allocation of agricultural resources.
B. caused the world price of sugar to rise above its domestic price.
C. increased domestic sugar production.
D. lowered the incomes of U.S. sugar growers.
Please read the article I posted in answer to this question. See below.
To determine the correct answer to this question, we need to analyze each option and evaluate if it accurately describes the impact of the U.S. sugar program. Let's break it down:
A. Improved the world allocation of agricultural resources: The U.S. sugar program aims to support domestic sugar production and protect the domestic sugar industry. It does not primarily focus on improving the global allocation of agricultural resources. Therefore, option A is not correct.
B. Caused the world price of sugar to rise above its domestic price: The U.S. sugar program isn't designed to directly influence the global price of sugar. However, by imposing tariffs and import quotas, it restricts the amount of foreign sugar entering the U.S. market, which can indirectly contribute to higher global sugar prices. Therefore, option B is a plausible answer.
C. Increased domestic sugar production: The primary objective of the U.S. sugar program is to protect and support domestic sugar production. The program achieves this by providing price supports, maintaining import quotas, and offering loans to American sugar producers. Therefore, option C is a correct answer.
D. Lowered the incomes of U.S. sugar growers: This option contradicts the intention of the U.S. sugar program, which strives to provide financial assistance and stability to domestic sugar growers. Therefore, option D is not an accurate representation of the program.
Based on the analysis above, the correct answer is option C: the U.S. sugar program has increased domestic sugar production.