The Reason That Most of the Coffee That Is Consumed

question 169

Multiple Choice

The reason that most of the coffee that is consumed in the United States comes from Colombia is that

• A) Colombia has an absolute advantage in producing coffee relative to the United States.
• B) Colombia has a comparative advantage in producing coffee relative to the United States.
• C) coffee cannot be grown in the United States.
• D) government trade disincentives regarding Colombian coffee make such trade possible.

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Definitions:

Board of Governors

The leading body of the Federal Reserve System, overseeing the Federal Reserve Banks and setting monetary policy.

Appointed

Designated or assigned to a position or role.

Open Market Operations

The purchase and sale of government securities by a central bank to control the money supply and interest rates.

Monetary Policy

Actions undertaken by a country's central bank to control the money supply and interest rates to achieve macroeconomic objectives like controlling inflation, consumption, growth, and liquidity.