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
Economics
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Refer to the figure above. If A forms a customs union with C, A's welfare will change by
A) $a + $e B) $a + $b + $c + $d + $e C) $a + $e - $b - $c - $d D) $a + $e - $h - $i - $j
Economics
The difference between the yield on 3-month Treasury bills and 10-year Treasury notes is largest typically during:
A) recessions B) expansions C) periods of high inflation D) when the yield curve is inverted
Economics