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 Lesson 1: Protection vs. Free Trade 

Please read Chapters 1-4 in Protection or Free Trade

1. What must be done in order to improve the condition of all who work for a living?   (Chp. 1) 

2. If the question of protection vs. free trade can be decisively answered, why is it still so controversial?   (Chp. 1) 

3. What is the necessary relationship between sequence and causation?   (Chp. 2) 

4. Is it correct to assume that the growth and prosperity of the United States has been due principally to protection?   (Chp. 2) 

5. What is meant by protection as a national policy?   (Chp. 3) 

6. Workers need protection because   (Chp. 2) 

a. their long hours make it hard to take care of their personal affairs.
b. cruelly exploited foreign workers undercut their wages.
c. otherwise unions would have little bargaining power.
d. of capitalist exploitation.
e. None of the above.

7. What does the protective theory imply about international relations?   (Chp. 3) 

8. How do most citizens of all countries react to the paying of customs? Why do they react in this way?   (Chp. 3) 

9. If the protective theory is valid, should it not be extended to include states, counties, cities, neighborhoods and even families?   (Chp. 3) 

10. When communities are locally self-sufficient, they

a. keep all the money that comes into their community.
b. are able to develop a manufacturing base.
c. tend to live within their means.
d. have less wealth than they otherwise would.
e. None of the above.

11. Does a nation force its goods and services on another when it exports them?    (Chp. 4) 

12. What is the difference between a blockade and a tariff?   (Chp. 4) 

13. What long-term benefit is there to the consumer in buying domestically-produced goods, even if they cost more than imported goods?   (Chp. 4)