1. What are some of the effects of protecting “infant industries”? (Chp. 9)
2. Why, according to George, is it not possible for protection to encourage all domestic industry? (Chp. 9)
3. A "favorable" balance of trade (Chp. 9)
a. goes hand-in-hand with a strong domestic currency.
b. results when a nation imports more goods that it exports.
c. is seldom enjoyed by indebted Third World nations.
d. helped the US recover from the Great Depression.
e. None of the above.
4. If a “favorable” balance of trade resulted in prosperity, when would a country be most prosperous? (Chp. 9)
5. If we were to stop imports entirely, what exports would continue to drain the national wealth? (Chp. 9)
6. George notes that modern trade involves “much unnecessary transportation, and that producer and consumer are in many cases needlessly separated.” Give some current examples of this.
7. What is the true cause of wasteful over-transportation of goods? (Chp. 9)
8. The transfer of wealth from country to city
a. happens between nations as well as within them.
b. is slowed by protective tariffs.
c. happens more rapidly in developing countries.
d. is a drag on industrial development.
9. Under the mercantile system, how did nations attempt to increase their national wealth? (Chp. 10)
10. What is the function of money? (Chp. 10)
11. What is trade? (Chp. 10)
12. Are the imports of a nation analogous to a merchant’s sales, or purchases? Explain. (Chp. 10)
13. What mistake in thought leads to the idea that protection is needed in order to maintain high wages? (Chp. 11)
14. In which countries do we find the cheapest cost of production? (Chp. 11)
15. Which tends to come first, a higher general rate of wages, or a higher overall level of productivity? (Chp. 12)
