Tariff Removal Boosts Consumer Access in Low-Income Economies

Steps:

• Identify tariffs as taxes on imports that raise prices and limit foreign goods.
• Removing tariffs lowers import prices, increasing availability of diverse products.
• In low-income economies, this expands options without heavy reliance on domestic production.
• Evaluate benefits: focus on direct consumer gains over producer or revenue effects.

Why A is correct:

• Free trade theory (comparative advantage) increases consumer surplus by providing cheaper, varied imports, enhancing choice for budget-constrained households.

Why the others are wrong:

• B: Tariff removal may hurt domestic competitiveness, reducing exports via import competition.
• C: Declining industries face more pressure from cheaper imports, leading to job losses.
• D: Eliminating tariffs directly cuts import tax revenue, potentially straining government budgets.

Final answer: A