ECON 310 Lecture 2: Econ 310 ClassNotes, Week 1, Lecture 2, Page 3

Distinguish between the following terms

a) Direct subsidues vs. Indirect subsidies

b) Auction method quota allocation vs. Rent-seeking method quota allocation

c) Safeguard import Tariff vs. Import tariff

d) Anti-dumping duties vs. Countervailing duties

e) Trade creation vs. Trade diversion

1. (3 marks) Using suitable examples, discuss three ways of classifying economics (i.e., micro vs. macro, market economy vs. socialist economy, and positive vs. normative).