Answer the next question using the figure below.
In the diagram, line AB is the U.S. production possibilities curve and line AC shows the consumption possibilities for the U.S. after it has decided to engage in international trade. We can conclude that the United States
A. has decided to trade beef for cheese.
B. has chosen to specialize in the production of cheese.
C. is relatively more efficient than its trading partners in producing both cheese and beef.
D. has chosen to specialize in the production of beef.
Answer: B
You might also like to view...
If the disposable income decreases, then
A) the demand for loanable funds increases. B) the quantity of loanable funds demanded increases. C) the supply of loanable funds increases. D) the quantity of loanable funds supplied decreases. E) the supply of loanable funds decreases.
Import tariffs generally ____ the output of domestic producers of the affected products and also ____ the output of domestic exporters
a. increase; increase b. increase; decrease c. decrease; increase d. decrease; decrease
The idea that aggregate demand fluctuates due to irrational waves of pessimism by households and firms is known as _____
Fill in the blank(s) with correct word
OLED television prices rise by 10 percent, and in response the quantity of those OLED televisions supplied increases by 5 percent. The supply elasticity for OLED television sets in that price range is
A. 2.0. B. 0.5. C. -2.0. D. 1.5.