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Question 259

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Use the following to answer questions :
Figure: Guns and Butter 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.
-(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.

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