Multiple Choice
Use the following to answer questions :
Figure: Guns and Butter
-(Figure: Guns and Butter) Look at the figure Guns and Butter. If the economy is operating at point B, producing 16 guns and 12 pounds of butter per period, a decision to move to point E and produce 18 pounds of butter:
A) indicates that you can have more butter and guns simultaneously.
B) makes it clear that this economy has decreasing opportunity costs.
C) necessitates a loss of eight guns per period.
D) necessitates a loss of four guns per period.
Correct Answer:

Verified
Correct Answer:
Verified
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