Short Answer

Respond to the questions in complete paragraph responses.Provide details, evidence and analysis to support your position. It may be necessary to respond to question in more than one paragraph.

1. How does a central bank influence financial markets? Describe the tools of monetary policy.

2. Although GDP is the most common measurement of the development of international

economies, it has many draw backs.Pick an alternative development index to GDP and explain how it is better indicator of the well-being of nation than GDP.Be sure to include the drawbacks to GDP that this alternative indicator is better able to address.

3. Does the NAFTA effectively serve its purpose of "accelerating economic growth, social progress and cultural development"in North America? Is NAFTA a beneficial agreement for Canada?

4. Is there ever a reason for protectionism? Should we ever restrict free trade or do the benefits of

free trade outweigh the costs?