Multiple Choice
Use the following to answer questions :
Figure: Production Possibility Frontier
-(Figure: Production Possibility Frontier) Look at the figure Production Possibilities Frontier. If the economy is operating at point B, producing 16 cars and 12 computers per period, a decision to move to point E and produce 18 computers:
A) indicates that you can have more computers and more cars simultaneously.
B) makes it clear that this economy has decreasing opportunity costs.
C) entails a loss of 8 cars per period.
D) entails a loss of 4 cars per period.
Correct Answer:

Verified
Correct Answer:
Verified
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