2. Consider a small country that imports good and exports good y and is initially trading freely with a "large" rest of world, and whose citizens are all the same and have homothetic preferences. The government of this country is concerned about the health of its (representative) citizen: in particular, accord- ing to a new health study, the citizens of this country are consuming good x and good y in a relative proportion that constitutes a perfectly well-balanced diet, but they are eating too much. a. Using the standard trade model (i.e., one with at least two factors of produc- tion so that diminishing returns imply a bowed-out PPF), and assuming that the government cannot force its citizens to violate their budget constraints (so that balanced trade must be maintained throughout, provide a ranking, from best instrument to worst instrument, over an import tariff, a production subsidy, and a consumption tax, for achieving a health improvement for the representative citizen of this country. b. Offer an interpretation of the ranking you provide in part (a) above according to the logic of the "targeting principle."