Y Y A A' X X Nation 1 Nation 2

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter12: Environmental Protection And Negative Externalities
Section: Chapter Questions
Problem 14RQ: What is an externality?
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Question

a.) Looking at the graphs, which nation has a stronger preference for 'Y'? Explain.

b.) Looking at the graphs, which nation has comparative advantage in producing good 'X'. Why?

c.) What do the points A and A' on the graphs represent? Explain.

Y
Y
A
A'
X
X
Nation 1
Nation 2
Transcribed Image Text:Y Y A A' X X Nation 1 Nation 2
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