ESTIMATING THE COST TO CONSUMERS OF THE US SUGAR QUOTA - AN EXERCISE FOR INTRODUCTORY ECONOMICS CLASSES

With the passage of NAFTA, the opening of the U.S. economy, and the fo rmation of large regional trading blocks, it has become increasingly i mportant to include issues from international trade in the introductor y course in economics. The degree of protection afforded some domestic producers, however, is still substantial. This article provides a cla ssroom exercise based on one of those products, sugar, complete with a hands-on calculation of the economic impact of the quota on consumers .