long answer

1. Identify the main types of unemployment and describe each. What is/are applicable to the present Canadian economy and explain briefly.

2. Identify and explain the arguments for trade protection. Are you in favor of free trade or trade protection?

Please justify your stand.

3. Please identify four (4) main impediments to economic development and describe each briefly. What would you consider as the most important impediment to development?

4. What are the stages or phases of the business cycle? In what stage of the business cycle is Canada now in? Please justify/explain. What is the government doing to ensure sustainable economic growth? Do you agree with government economic stabilization policies?

5. Should government borrow to stabilize the economy? What are the risks involved in such a policy and how can the government manage those risks? What is the relevance of the crowding out effect?

6. What are the costs and benefits of economic growth? Please identify and explain.

7. The Republics of Wakanda and Gryffindor both produce planes and ships using 6 months a year to produce each product type. The results are as follows:

	Planes ($ million)(6 mos)	Ships ($million)(6 mos)	Total value produced ($ million)(1 year)
Wakanda	75	50	125
Gryffindor	30	40	70

a. Which country has the absolute advantage? Why?

b. How can the two countries benefit using the Comparative Advantage theory? Please explain and show calculations.

c. Why is the Dynamic Comparative theory an improvement over the standard Comparative Advantage theory?