The countries of Fingal and Shedden both produce only pretzels and potato chips. Their PPFs are given in the following table. The opportunity cost of 1 bag of pretzels in Fingal is _______ and the opportunity cost of 1 bag of pretzels in Shedden is _______.

1 bag of chips; 2/3 bags of chips
100 bags of chips; 75 bags of chips
1 bag of chips; 0.75 bags of chips
1 bag of chips; 1.5 bags of chips

The countries of Fingal and Shedden both produce only pretzels and potato chips. The table gives their production possibilies. _______ has a comparative advantage in the production of potato chips and _______ has a comparative advantage in the production of pretzels.

Shedden; Shedden
Fingal; Shedden
Fingal; Fingal
Shedden; Fingal

The countries of Fingal and Shedden produce only pretzels and potato chips. The table sets out their production possibilities. If Fingal and Shedden engage in trade, Shedden will export _______, and Fingal will export _______.

potato chips; potato chips
pretzels; potato chips
potato chips; pretzels
pretzels; pretzels

The countries of Fingal and Shedden produce only pretzels and potato chips. The table sets out their production possibilities. Technology in Shedden advances and its resources can produce 100 additional bags of potato chips and pretzels. If Fingal and Shedden now engage in trade, Shedden will export _______, and Fingal will export _______.

potato chips; potato chips
pretzels; potato chips
potato chips; pretzels
pretzels; pretzels

The table shows the demand and supply schedules for hats in Freezing Lake. The table also shows the export supply schedule of Frozen Mountain, a country that under free trade will export hats to Freezing Lake. In Freezing Lake before trade takes place, the price is _______ and quantity of hats bought is ______. In Freezing Lake after free trade takes place, the price is _______ and quantity of hats bought is _________.

$30; 35 hats; $20; 45 hats
$32.50; 32.5 hats; $30; 35 hats
$30; 35 hats; $40; 45 hats
$32.50; 32.5 hats; $20; 45 hats

The table shows the demand and supply schedules for hats in Freezing Lake. The table also shows the export supply schedule of Frozen Mountain, a country that under free trade will export hats to Freezing Lake. The hat industry in Freezing Lake lobbies the government to impose a $15 per hat tariff on imported hats. After the tariff is imposed, what is the equilibrium price and quantity of hats bought in Freezing Lake?

$35; 30 hats
$37.50; 27.5 hats
$32.50; 32.5 hats
$25; 40 hats

The table shows the demand and supply schedules for hats in Freezing Lake. The table also shows the export supply schedule of Frozen Mountain, a country that under free trade will export hats to Freezing Lake. The hat industry in Freezing Lake lobbies the government to impose a $15 per hat tariff on imported hats. How much tariff revenue does the government collect?

$150
$400
$250
$225

The figure shows the planetary market for gloves on a planet which has only two countries. The importing country imposes a quota of 300 pairs of gloves per year. The price of a pair of gloves in the importing country is ______________.

$14
$8
$10
$12

The figure shows the planetary market for gloves on a planet which has only two countries. The importing country imposes a quota of 300 pairs of gloves per year. Who gains from the quota and what is the gain?

the importer; $600
the government of importing country; $1,200
the government of importing country; $600
the importer; $1,200

The figure shows the planetary market for gloves on a planet which has only two countries. The exporting country imposes a VER of 300 pairs of gloves per year. Who gains from the VER and what is that gain?

the government of importing country; $600
the importer; $1,200
the exporte;, $1,200
the government of exporting country; $600

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