problem 1:

a) Describe, in detail, the various effects of quota.

b) Illustrate that quota and tariff are more or less similar apart from for the revenue effect.

problem 2:

a) Describe as under what conditions, tariff and quota are equal.

b) Illustrate that the domestic producers producing importable goods favor quota to tariff.

problem 3:

a) Differentiate between the tax and subsidy.

b) Analyze the effects given by the imposition of a tax.

problem 4: Compare and contrast the tax burden of the buyer and seller if:

a) Supply curve is relatively elastic.

b) Supply curve is relatively inelastic.

c) Demand curve is relatively elastic.

d) Demand curve is relatively inelastic.

problem 5:

a) Define the term Excess burden of a tax.

b) Compute the surplus burden of a tax.

c) Describe the methods to lower surplus burden?