1. Explain why economists often prefer tariffs to quotas

2. In each of the following cases, calculate the effective rate of protection of the final product, assuming that markets are competitive and all other things remain the same:

a. A tariff on intermediate inputs raises the price of intermediate inputs by 10 percent in a market where, prior to the tariff, intermediate inputs accounted for 50 percent of the total cost of the final product.
b. A quota on intermediate inputs raises the price of intermediate inputs by 100 percent in a market where, prior to the quota, intermediate inputs accounted for 25 percent of the total cost of the final product.
c. A quota on imports of the final product raises the price of the final product by 30 percent in a market where, prior to the quota, intermediate inputs accounted for 50 percent of the total cost of the final product.
d. A tariff on imports of the final product raises the price of the final product by 30 percent in a market where, prior to the quota, intermediate inputs accounted for 10 percent of the total cost of the final product.

3. Investigate how a ban on export taxes ended up in the U.S Constitution