Please help me with these questions: Question 1. With free trade, each dollar of value added in the domestic cloth-making industry is divided as follows: 20 cents value added, 40 cents for cotton yarn, and 40 cents for other fibers. Suppose that a 40 percent ad valorem tariff is placed on cloth imports and a 1/4 tariff (25 percent) goes on cotton yarn imports. There is no tariff on imports of other fibers. Calculate the effective rate of protection.

Question 2. A small country imports sugar. With free trade at the world price of $10 per ton, the country's national market is:

domestic production: 100 tons per year,

domestic consumption: 500 tons per year, imports: 400 tons per year.

The country's government now decides to impose a quota that limits sugar imports to 200 tons per year. With the import quota in effect, the domestic price rises to $13 per ton, and domestic production increases to 200 tons per year. The government auctions the rights to import the 200 tons.

(a) Calculate how much domestic producers gain or lose from the quota.

(b) Calculate how much domestic consumers gain or lose from the quota.

(c) Calculate how much the government receives in payment when it auctions the quota rights to import.

(d) Calculate the net national gain or loss from the quota.

Question 3. K_A and K_B denote the amount of capital stock existing in nation A and nation B, respectively. Before international capital movement, K_A = $10 and K_B = $50. Interest rate is denoted as r. (Value) marginal product of capital curve is given as: MP_K = 0.6 - 0.01K in both A and B. Assuming perfect competition, MP_K = r.

(1) Derive the interest rate, laborers' income and capitalists' income of nation A before international capital movement.

(2) Derive the interest rate, laborers' income and capitalists' income of nation B before international capital movement.

(3) If international capital movement is allowed, interest rate becomes 0.3 in each nation. How much capital stock would exist in nations A and B, respectively?

(4) Calculate the national welfare level and loborers' income of nation A after international capital movement.