Multiple Choice
Use the following to answer question(s) :
Exhibit: Guns and Butter
-(Exhibit: Guns and Butter) If the economy were operating at point B, producing 16 units of guns and 12 units of butter per period, a decision to move to point E and produce 18 units of butter:
A) indicates you can have more butter and guns simultaneously.
B) makes it clear that this economy experiences decreasing opportunity costs.
C) involves a loss of 8 units of guns per period.
D) involves a loss of 4 units of guns per period.
Correct Answer:

Verified
Correct Answer:
Verified
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