13. Assignment 3 Flashcards
1
Q
What is the theory of comparative advantage?
A
The theory that trade benefits both parties by allowing each to specialize in the goods that it can produce with relative efficiency.
2
Q
What is the difference between a race to the bottom and a pollution haven?
A
Race to the bottom is the process, pollution haven the result.
3
Q
Name a way to address water shortages from the supply side.
A
- Aquifers
- Dams
- Desalination
4
Q
Name 2 reasons why governments often subsidize water supply.
A
- Often historical reasons
- Irrigation provides both public and private goods
- Hard to remove without political uproar
- Basic need
