Use the Following to Answer Questions

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 producing 8 cars and 12 computers per period:

A) unemployment or inefficiency will ensue.
B) the notion of increasing opportunity cost is invalidated.
C) the economy is still efficient but has made a decision not to buy as much as it could.
D) something must be done to reduce the amount of employment.