ECON 2020
WRITING ASSIGNMENT INSTRUCTIONS
READ EVERY WORD OF THESE INSTRUCTIONS.
Assignment
Part 1: Suppose that Congress imposes a tariff on imported automobiles to protect the U.S. auto
industry from foreign competition. Assuming that the United States is a price taker in the world
auto market, show the following on a diagram: the change in the quantity of imports, the loss to
U.S. consumers, the gain to U.S. manufacturers, government revenue, and the deadweight loss
associated with the tariff. The loss to consumers can be decomposed into three pieces: a gain to
domestic producers, revenue for the government, and a deadweight loss. Use your diagram to
identify these three pieces.
Part 2: Now assume you are an astute student of economics (not a hard assumption, we hope).
Although all the arguments for restricting trade have their shortcomings, name the two or three
arguments that seem to make the most economic sense to you. For each, describe the economic
rationale for and against these arguments for trade restrictions.
Grading
Part 1: Graphs drown by hand or in Excel are accepted, but should neatly show the required
information as described above. This part should be completed in ONE page. Hand drown
graphics should be scanned and attached to the project.
Part 2: I am not looking for you to simply repeat several key phrases. So, in your own words,
name the arguments and provide the rationale. This part should be completed in ONE to TWO
pages.
I will grade both parts very strictly for content, structure, and composition. Please be certain to
check your grammar and spelling. Any paper without such errors or with only very minimal
errors will be acceptable and receive full credit. Treat this assignment with the same attention to
detail as you would a resume that you are submitting to a potential employer.
