QUESTION 3 As trade distortions such as tariffs and quotas in a small country are removed, dead weight losses will decrease, hence increasing national welfare. deadweight losses will increase, hence decreasing national welfare. government tariff revenue will increase, hence increasing national welfare. government tariff revenue will decrease, hence decreasing national welfare. QUESTION 4 If the exchange rate for the US dollars and the Swiss francs (SF) is SF1.5 = $1 and then goes to SF1.52 = $1: The dollar depreciates and the franc appreciates. The dollar appreciates and the franc stays the same. The dollar appreciates and the franc depreciates. The dollar stays the same and the franc appreciates.

QUESTION 3 As trade distortions such as tariffs and quotas in a small country are removed, dead weight losses will decrease, hence increasing national welfare. deadweight losses will increase, hence decreasing national welfare. government tariff revenue will increase, hence increasing national welfare. government tariff revenue will decrease, hence decreasing national welfare. QUESTION 4 If the exchange rate for the US dollars and the Swiss francs (SF) is SF1.5 = $1 and then goes to SF1.52 = $1: The dollar depreciates and the franc appreciates. The dollar appreciates and the franc stays the same. The dollar appreciates and the franc depreciates. The dollar stays the same and the franc appreciates.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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