Refer to the Given Diagram, in Which Line AB Is

question 258

Multiple Choice

Refer to the given diagram, in which line AB is the U.S. production possibilities curve and AC is its trading possibilities curve. We can conclude that the United States

• A)has chosen to specialize in the production of cheese.
• B)has chosen to specialize in the production of beef.
• C)has decided to trade beef for cheese.
• D)is relatively more efficient than its trading partners in producing both cheese and beef.

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Definitions:

Sales Taxes

Taxes imposed by governments on the sale of goods and services, usually calculated as a percentage of the sale price.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated as current assets divided by current liabilities.

Current Liability

A company's financial obligations that are due within one year or within the normal operating cycle, including accounts payable and short-term loans.

Current Liability

An obligation that is due to be paid within one year or within the normal operating cycle of the business, whichever is longer.