Trade Problem Set 105 2-1

1.When trade policies are implemented, the benefits that accrue in the economy are often concentrated in the hands of a relatively small number of citizens, while the losses that accrue are widely dispersed. For each of the trade policies below, indicate which domestic groups benefit and which lose AND whether the effects for each group are relatively concentrated or dispersed.

A. an import tariff on chicken

Name of Group	Winners or Losers	Concentrated or Dispersed
Chicken producers
Chicken consumers
Taxpayers or recipients of government benefits

 

B. an export subsidy on soybeans

 

Name of Group	Winners or Losers	Concentrated or Dispersed
Soybean producers
Soybean consumers
Taxpayers or recipients of government benefits

International Trade Theory and Policy - Chapter 105: Last Updated on 1/06/08