Answer the following questions with specific explanations

D Question 1 The most favoured nation principle of the WTO means that O each WTO member can choose a favourite nation and trade with it without any tariff restrictions O each WTO member can subsidize goods exported to their favourite country O each WTO member has to set the equivalent tariffs for all WTO members O regional trade agreements are not allowed within the WTO D Question 2 An optimal tariff in a large economy O always leads to trade wars O does not affect world welfare O leads to a decrease in world welfare O leads to an increase in world welfare D Question 3 Infant industry protection O always leads to an increase in domestic welfare O may lead to an increase in domestic welfare if the industry becomes profitable in the long run O is welfare improving because if positively affects children O always leads to a decrease in domestic welfare