The figures show the production possibility frontiers of Sparta and Dexter. Without trade, Sparta produces at point a and the slope of its production possibility frontier at that point is 3 cans of dog food per 1 can of soup. Dexter produces at point b and the slope of its production possibility frontier at that point is 10 cans of dog food per 1 can of soup. The opportunity cost of a can of soup in Sparta is _______ and the opportunity cost of a can of dog food in Dexter is _______.

3 cans of dog food; 10 cans of dog food
1/3 can of dog food; 10 cans of soup
1/3 can of dog food; 1/10 can of soup
3 cans of dog food; 1/10 can of soup

The figures show the production possibility frontiers of Sparta and Dexter. Without trade, Sparta produces at point a and Dexter produces at point b. Sparta has a comparative advantage in _______ and Dexter has a comparative advantage in _______.

soup; soup
dog food; soup
soup; dog food
dog food; dog food

The figures show the production possibility frontiers of Sparta and Dexter. Without trade, Sparta produces at point a and Dexter produces at point b. When Sparta and Dexter trade with each other, Sparta imports _______ and Dexter imports _______.

soup; soup
dog food; soup
dog food; dog food
soup; dog food

The countries of Shark and Whale both produce fish food and dog biscuits. Shark has a comparative advantage in the production of fish food. Whale will import _______ and consumption in Whale _______.

dog biscuits; outside its production possibility frontier
fish food; is on its production possibility frontier
dog biscuits; is on its production possibility frontier
fish food; is outside its production possibility frontier

The figure shows the international market for candles in a far-off galaxy. There are only two countries in the galaxy. If the two countries do not trade with each other, the price of a candle is ____ in one country and ______ in the other country.

$5; $5
$10; less than $3
$3; $3
$3; $10

The figure shows the international market for candles in a far-off galaxy. There are only two countries in the galaxy. With free international trade, the price of a candle ______________.

is $3
is $5
is $10
depends on each country's demand for and supply of candles

The figure shows the international market for candles in a far-off galaxy. There are only two countries in the galaxy. With free trade, the balance of trade in candles in the galaxy is _________________.

$0
$1,200
$360
$600

The figure shows the international market for light bulbs on a two country planet. Before a tariff of $1.50 is levied on light bulbs, 8 million light bulbs are traded each year. After the tariff is introduced, the exporting country receives _______ per light bulb and the importing country pays _______ per light bulb.

$2.50; $4.00
$4.00; $4.00
$4.00; $2.50
$3.00; $4.00

The figure shows the international market for light bulbs on a two country planet. Before a tariff of $1.50 is levied on light bulbs, 8 million light bulbs are traded each year. The tariff revenue received by the importing country's government is _____________.

$12 million
$9 million
$24 million
$15 million

When a quota is imposed, the gap between the import-supply price and domestic price is captured by the _______, and when a VER is imposed, the gap between the export price and domestic price is captured by the _______.

exporter; importer
importer; exporter
importer; government of importing country
exporter; government of importing country

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