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.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter15: International Trade And Finance

Section: Chapter Questions

Problem 10SQP

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