Suppose That Elimination of Tariffs on Agricultural Products Means That

question 63

Essay

Suppose that elimination of tariffs on agricultural products means that 1,000 farm workers lose jobs that pay an average of $20,000 per year.At the same time,because of the importation of relatively cheaper foreign vegetables,150 million 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 outweigh the costs in this simple example
d.Which group is most likely to become politically involved over the issue of removing the tariffs,the farm workers or the consumers? Wh

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Definitions:

Government Regulation

Laws and rules established by government agencies intended to control or manage specific industries or activities for the protection of public welfare.

Synergy

The collaboration or working together of two or more organizations, substances, or entities to create an outcome that is more significant than the total of their individual effects.

Cell Phone Providers

Companies that offer services for mobile phone users, including voice communication and data services.

Media Concentration

The phenomenon where a small number of companies own and control a large share of mass media outlets, leading to potential issues with diversity and objectivity in information.