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Question -Carefully explain how China imposing an import tariff can alter the distribution of real income in China. Carefully explain the circumstances under which Australia imposing an export tax on iron ore could improve the aggregate welfare of Australia. For the purpose of this second question, aggregate all of Australias imported goods into a single good labelled imports.-
This essay is theoretical rather than applied in nature and involves the extensive use of well explained diagrams. These diagrams can be hand drawn in the essay. It requires that the importance of the assumptions that underpin the various theoretical models be discussed. All of the theories that have been discussed in lectures and tutorials that are RELEVANT should be explained. Part of the challenge of this
essay is determining which theories are relevant. It is not expected that you include any theories that have not been discussed in lectures and tutorials. This essay should be referenced.
If a student does not attempt this essay they will receive a mark of zero.
Please read section 5b relating to both extensions to the due date and the penalties for late submission.
There will be no resubmissions of the essay under any circumstances.
There is a rough word limit of 2000 words. The essay should be long enough to answer the question well, but not long enough to waffle.

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