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1. Assume that a government wants to boost economic activity in a sector by protecting it with an import tariff. Assume that the world market price is below the country's autarky price. This question will ask you to use a partial equilibrium analysis to examine the welfare effects of the tariff. Use graphs when answering each part of the question.

a) Describe the effect of an import tariff on consumer surplus in the country. Explain your answer.

b) Describe the effect on producer surplus in the country. Explain your answer. (4 points) c) Describe the effect on government revenues. Explain your answer.

d) Explain what determines the overall welfare effect for the country.

e) What is the overall effect on foreign welfare? Explain your answer.

f) Suppose that the government imposes an import quota instead, what difference does this make to your answer to d? Why would the government want a quota instead? Explain your answer