Essay
(Figure: Guns and Butter) Look at the figure Guns and Butter.Suppose the economy produced
8 guns and 12 pounds of butter per period.
A.This is a possible choice but is inefficient.
B.The notion of increasing opportunity cost is invalidated.
C.The economy is still efficient but has made a decision not to buy as much as it could.
D.Something must be done to reduce the amount of employment.
Correct Answer:

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