Problem 1. The Incidence of the Tax
Identify and explain the factors that determine who actually bears the burden of a tax increase on a specific good, such as gasoline, cigarettes, or some other product. Use at least two examples in your response. Is the incidence of the tax a consideration when government imposes this tax increase? Why or why not?
Problem 2. Trade restrictions have a significant impact upon international trade.
Identify and discuss at least two arguments that support trade restrictions and two against trade restrictions. Use at least one example for each argument. Which arguments do you agree with and why?