If a textile worker earns $38,000 per year working in the textile mill on a job that was saved by a protective tariff costing consumers $148,000 per year (for that job alone), the textile worker could be paid $48,000 to stay at home all day watching TV when the protective tariff is eliminated, and consumers would still be better off by approximately

Question

Quizplus · Accepted Answer

The protective tariff costs consumers $148,000 per year to save a job that pays $38,000. If the tariff is eliminated and the worker is paid $48,000 to stay home, the total cost is $48,000, saving consumers $100,000 ($148,000 - $48,000) per year.

If a Textile Worker Earns $38,000 Per Year Working in the Textile