Use the Following to Answer Question(s)

question 100

Multiple Choice

Use the following to answer question(s) :
Exhibit: Guns and Butter

-(Exhibit: Guns and Butter) If the economy were producing 8 units of guns and 12 units of butter per period:

• A) this is a possible choice, but would involve unemployment and/or inefficiency.
• 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.