Rank the following in ascending order of Home welfare and justify your answers. If two items are equivalent, indicate this accordingly.

a. Tariff of t in a small country corresponding to the quantity of imports M. 4

b. Quota with the same imports M in a small country, with quota licenses distributed to Home firms and no lobbying.

c. Quota of M in a small country with quota licenses auctioned to Home firms.

d. Voluntary export restraint of M in a small country.

e. Quota of M in a small country with quota licenses distributed to Home firms due to lobbying.

ascending order: b, d, e, a, c

Explanation:

Ranking:

b. Quota with the same imports M in a small country, with quota licenses distributed to Home firms and no lobbying.

d. Voluntary export restraint of M in a small country.

e. Quota of M in a small country with quota licenses distributed to Home firms due to lobbying.

a. Tariff of t in a small country corresponding to the quantity of imports M.

c. Quota of M in a small country with quota licenses auctioned to Home firms.

Welfare work are given priority, so quotas were distributed and tariff the countries who gain from social welfare.

Social welfare are the benefit provided by the goverment to the citizen, in the form of incentives, quota, subsidies, etc. This is done to bring equality in the society.