Suppose That Elimination of Tariffs on Agricultural Products Means That

question 175

Essay

Suppose that elimination of tariffs on agricultural products means that 1,000 farm workers lose jobs that pay an of $20,000 per year. At the same time, because of the importation of relatively cheaper foreign vegetables, 150 mi consumers save $2 per year on their grocery bills.
a) What is the total income lost by farm workers because of the free trade?
b) What is the total dollar amount saved by all consumers combined?
c) Which is greater, the lost income or the consumer savings? Do the benefits of free trade out- weigh the costs i simple example?
d) Which group is most likely to become politically involved over the issue of removing the tariffs, the farm wo or the consumers? Why?

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Definitions:

Ear Canal

The narrow tube through which sound waves travel from the outer ear to the eardrum.

Up And Back

A technique often used for administering ear drops or examining the ear, where the ear is pulled upward and backward to straighten the ear canal.

Macular Degeneration

A medical condition that results in blurred or no vision in the center of the visual field due to damage to the macula of the retina.

Central Vision

The part of a field of vision where one can see clearly and sharply; it's crucial for reading, driving, and any activity requiring focused vision.