PSAT Reading Question 539: Answer and Explanation

Question: 539

According to lines 92–96, a free trade agreement between the U.S. and Canada was implemented in 1988. Based on the data provided in the table, what type of business can we reasonably conclude would most likely have had the greatest immediate benefit in the first year of the treaty becoming law?

• A. A company that manufactures cars in the United States and sells them to Canadians
• B. A company that purchases raw materials from Canada to manufacture products in its U.S. factories
• C. A Canadian company that manufactures products exclusively for the Canadian government
• D. A U.S. company that provides retail services to customers in the continental United States

Correct Answer: A

Explanation:

(A) A significant increase in exports from the U.S. to Canada occurred after the treaty's passage, so a U.S. company that manufactures cars to be sold in Canada benefited most from the free trade agreement. The answer is not choice (B), because there is not as significant an increase in imports from Canada to the U.S. No information is provided about how this treaty impacted commerce within each country, making choices (C) and (D) incorrect.