Two Economists Are Debating Whether to Remove a Tariff on Luxury

Two economists are debating whether to remove a tariff on luxury vehicles. They agree that consumers will benefit by $5 billion and that the harm done to domestic businesses and workers will be only $4 billion. One argues that these facts make it obvious that the tariff should be removed. The other disagrees. What would be a likely reason for the second economist to disagree?

A) There is no good reason because the benefits outweigh the costs.
B) He or she is using a different economic model to understand the world.
C) He or she has a different interpretation of the empirical evidence.
D) He or she has different value judgments about the weights that should be put on the benefits and costs.

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