Problem
1. Consider a tax on cigarettes. Do you expect the tax incidence to fall more heavily on buyers or sellers of cigarettes? Why?
2. In the Philippines, rice production is lower than rice consumption, resulting in a need to import rice from other countries. In this situation, the Philippine government might consider subsidizing rice farmers. What are the potential benefits of such a policy? What are the costs?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.