Question 1
Related to the
Economics in Practice on page 669: If the candle makers in the petition were able to gain protection for their industry, the French economy would most likely
◦ benefit in the short run.
◦ become more efficient.
◦ benefit only if the protection was in the form of a tariff.
◦ have to pay higher prices for candles.
Question 2
Related to the
Economics in Practice on page 669: Satirist Frederic Bastiat's essay arguing for a quota on sunlight in order to protect domestic candle makers suggests that it is pointless to
◦ participate in international trade.
◦ protect industries that cannot compete effectively.
◦ legislate based on economic theory.
◦ create barriers to trade in some markets but not others.