Question

Liquor stores in Tennessee lobby the state legislature, asking that wine shipments from out-of-state be made illegal. They argue that if consumers are allowed to buy wine from out-of-state, many in-state employees of liquor stores will lose their jobs. What would an economist likely say in response to this argument?

Answer 1

Explanation:

An economist will respond to this situation by suggesting that the people of Tennessee reallocate resources used formerly for wine production to producing something else that they are good or famous for producing. This move will most definitely make people of Tennessee richer and other jobs will infact be created.

If out-of-state wine happens to be cheaper than what is being produced in Tennessee, then it will be most reasonable for Tennesseeans to stick to out-of-state wines.  

Liquor store job loses will give birth to new jobs that might not have been thought of and overtime, people who have lost their jobs will get a new job.

I hope this helps. Cheers.