Question 1 To tackle climate change, suppose Singapore imposed a carbon tax t on our imports of energy. Analyse the welfare effects of such a policy, relative to the initial state of free trade. (You may conduct this analysis with diagram(s) arbitrarily, without the use of specific numbers.) Do you think the welfare effects of the carbon tax on society contradict its intentions? Question 2 The Balance of Payment (BoP) records a summary of the economic transactions between residents of an economy and the rest of the world. Suppose an American lost his wallet and phone in Singapore. If there is perfect information, what are the changes/entries in Singapore's BoP in theory? Demonstrate the possible outcomes. (Note: In practice, this loss will only be captured as a Statistical Discrepancy.) Question 3 Suppose you observed that, by-and-large, in times of economic recessions, China mainly adopts fiscal policies, while the United States mainly utilizes monetary policies. Explain and show why these policies are effective in the respective economies.