a. In recent years, the global economy has experienced trade wars between the US and China and according to the former IMF director, Christine Lagarde, "...protectionist measures are not only hurting growth and jobs, but they are also making tradable consumer goods less affordable - and disproportionately harming low-income households." - (The Guardian, 5 June, 2019).

Explain what Christine Lagarde means and discuss the effects of trade wars on welfare to both countries and the world, through the imposition of import tariffs. Use appropriate diagrams to support your arguments.

b) The Beatles claimed that "I don't care too much for money, money can't buy me love". (Shortly after first making this claim they joined the ranks of the richest people in the world). Does their claim undermine the use of GDP to measure welfare? Discuss