Question 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.
Question 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.
Question 3:
a) Differentiate between the tax and subsidy.
b) Analyze the effects given by the imposition of a tax.
Question 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.
Question 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?