Question

a tariff is a tax on imported goods intended to protect domestic producers of similar goods from international competition. eliminating tariffs can lead to an influx of cheaper imported goods, lowering prices. in a place where domestic production is relatively expensive, this influx can suppress domestic production, as the countrys consumers favor more cheaply produced imported goods over domestically produced ones. a student consults a table showing projected changes in production and average market prices of agricultural commodities in four countries in a tariff - elimination scenario. based on the data, the student claims that compared with india and russia, agricultural production in argentina and the united states is likely relatively inexpensive.
which choice most effectively uses information from the text and data from the table to support the students claim?
a although agricultural production in india and russia would likely decrease if tariffs were eliminated, it would likely increase in both argentina and the united states.
b although eliminating tariffs would likely cause agricultural market prices to decrease in most locations, it would likely cause agricultural market prices to increase in both argentina and the united states.
c argentina and the united states are the only countries shown that are projected to see both an increase in agricultural production and a reduction in agricultural prices in the absence of tariffs.
d in the absence of tariffs, total agricultural production in argentina and the united states would likely exceed that in india and russia.

Explanation:

Step1: Analyze Option A

The claim in option A is about tariff elimination leading to an increase in agricultural production in India and Russia. However, the data shows that Argentina and the US have positive percentage changes in production. India has \(-3.24\) and Russia has \(-3.49\), which are decreases. So, option A is incorrect.

Step2: Analyze Option B

Option B claims that eliminating tariffs would cause agricultural market prices to decrease in most locations. But Argentina (\(+3.76\)) and the US (\(+0.80\)) have price increases. So, option B is incorrect.

Step3: Analyze Option C

Option C says Argentina and the US are the only countries projected to see an increase in agricultural production. Argentina (\(+3.76\)) and the US (\(+0.80\)) have positive production changes. India (\(-3.24\)) and Russia (\(-3.49\)) have negative changes. So, option C is correct.

Step4: Analyze Option D

Option D states that in the absence of tariffs, total agricultural production in Argentina and the US would exceed that in India and Russia. But the data only shows percentage changes, not total production amounts. So, option D is incorrect.

Answer:

C. Argentina and the United States are the only countries shown that are projected to see both an increase in agricultural production and a reduction in agricultural prices in the absence of tariffs.