4. (15 points) Use indifference curves as an indicator of national welfare to evaluate the following...

 

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4. (15 points) Use indifference curves as an indicator of national welfare to evaluate the following statement: "Suppose the price of a country's exports increases relative to its imports. This only benefits the country if it increases its quantity of exports in response. If a country does not increase exports when their relative price rises, then the price increase will not increase welfare." State your answer and explain in words. You might use a graph to help in your explanation. 4. (15 points) Use indifference curves as an indicator of national welfare to evaluate the following statement: "Suppose the price of a country's exports increases relative to its imports. This only benefits the country if it increases its quantity of exports in response. If a country does not increase exports when their relative price rises, then the price increase will not increase welfare." State your answer and explain in words. You might use a graph to help in your explanation.

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Statement Evaluation Export Price Increase and National Welfare Statement Suppose the price of a countrys exports increases relative to its imports Th... View the full answer