Question 4 is the hardest for students to answer; some additional explanations can help. If consumers pay a total of $100000 extra to save 100 Canadian jobs, then the cost of saving a job is $1000.

1. Which do you favour, free trade or protection? Explain why.
2. Assume you are voting on a request before the ministry called International Trade Canada to raise the tariff on imports of rubber thread. Rubber thread is made from latex and is a relatively small industry. It is used in the manufacture of elastic in items like socks, underwear, and bungee cords. Increasing the tariff would allow Canadian producers to avoid layoffs and to invest in technology. Would you vote for the tariff increase, or against it?
3. More generally, what are the benefits of keeping a job in Canada?
4. The costs of protectionism are paid by consumers in the form of higher prices. The obvious question is, "At what point do these costs exceed the benefits?" In your opinion, how much extra should consumers pay to keep a job in Canada? (Express this figure in dollars/per job.)