Fill-in-the-Blank
1. Fill in the blanks to make the following statements correct.
a. The case for free trade for an individual country is based
on the gains from trade that are possible due to
advantage. Free trade allows each country to in
products for which they have a.
b. Moving to freer trade can make the country as a whole
better off, but some groups or individuals are likely to be
made off when trade protection is removed.
c. A country may choose to protect certain industries from
free trade, but the cost of such protection is usually
average living standards.
d. The argument provided the rationale for Canada’s
National Policy of 1876. A high tariff wall allowed many
Canadian industries to develop where they may not have
been able to compete otherwise.
e. Advertisements that encourage us to “buy Canadian” are
promoting a(n) argument for protection. Money
spent on imported goods must ultimately be spent on
goods and services anyway.
f. Invalid arguments for protection usually come from a
misunderstanding of the gains from or from the
misbelief that protection can increase total.
2. Fill in the blanks to make the following statements correct.