Use the Following to Answer Question(s)

question 42

Multiple Choice

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

-(Exhibit: Guns and Butter) If the economy were operating at point B, producing 16 units of guns and 12 units of butter per period, a decision to move to point E and produce 18 units of butter:

• A) indicates you can have more butter and guns simultaneously.
• B) makes it clear that this economy experiences decreasing opportunity costs.
• C) involves a loss of 8 units of guns per period.
• D) involves a loss of 4 units of guns per period.