Author Question: U.S. imports of sugar are limited by an import quota that, according to a study updated in 2013, ... (Read 40 times)

jerry coleman · **on:** Jun 30, 2018

U.S. imports of sugar are limited by an import quota that, according to a study updated in 2013, imposed a total cost on American consumers close to ________, or an average cost of ________ per year for every job saved in the U.S sugar industry.

A) 3 billion; 10
B) 105 million; 3
C) 2 billion; 110
D) 3 billion; 1,000,000
E) 370 million; 20

Question 2

Discuss the two different methods the Bureau of Economic Analysis (BEA) uses to place current values on foreign direct investments.

What will be an ideal response?

Carliemb17 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

D

Answer to Question 2

The current cost method values direct investments at the cost of buying them today. The market value method is meant to measure the price at which the investments could be sold. These two methods can lead to different valuations because the cost of replacing a particular direct investment and the price it would command if sold on the market may be hard to measure.