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The cost of protecting jobs in uncompetitive sectors through tariffs is high: Saving a job in the sugar industry costs American consumers $826,000 in higher prices a year; saving a dairy industry job costs $685,000 per year; and saving a job in the manufacturing of women's handbags costs $263,000.
a. What are the arguments for saving the jobs mentioned in this news clip?
b. Explain why these arguments are faulty.
c. Is there any merit to saving these jobs?
The cost of protecting jobs in uncompetitive sectors through tariffs
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