1. Consider an economy with two types of goods, fish and coconuts, and two consumers, Robinson and Friday. Is it Pareto efficient to give half of the fish and half of the coconuts to each consumer? 2. Is it Pareto efficient to give all of the resources to Friday? 3. If there are no market failures in a free market economy, then is there a policy that makes all consumers strictly better off? 4. What are the two main practical problems with using activist trade policy to improve the terms of trade of the US with other countries? 5. What kind of country can gain in terms of trade from enacting tariffs? 6. True or False: The world was not very globalized in the early 20th century, and there is a gradual trend of becoming more open and globalized over time. 7. Between consumers and producers, who bears the burden of taxes? 8. Briefly list the four principles of tax design