5. For a small country, compare the protective effects of: a tariff, a quota, and a production subsidy. Specifically, (a) use well-labeled diagrams to identify the welfare effects of the three policy tools. [13 marks] (b) rank the three policies in terms of the potential distortions that would result from each, and explain why tariffs tend to dominate as a tool of protection. [12 marks]. 6. Explore the impact of the removal of export subsidies for world trade in agriculture. (a) Explain and use well-labeled diagrams to illustrate the welfare effects of the removal of export subsidies by a large agricultural exporting country (like the US or EU). Use a model with two countries, the exporter and the importer (where the importer represents the rest of the world). [15 marks] (b) The result of the elimination of export subsidies in agriculture has allowed many small countries to shift from importing to exporting agriculture. This effect is generally perceived to be a benefit to those countries, but we explored how some countries might not benefit. Explain and illustrate using well-labeled diagrams how the net welfare effect for these countries depends on the relative size of the resulting export surplus they are able to generate due to this shift. [10 marks]