Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions :
Figure: Guns and Butter
-(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) This combination invalidates the notion of increasing opportunity cost.
C) The economy is still efficient but does not buy as much as it could.
D) Something must be done to reduce the amount of employment.