Use the Following to Answer Questions

question 28

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.