Use the Following to Answer Questions

question 11

Multiple Choice

Use the following to answer questions :
Figure: Guns and Butter
-(Figure: Guns and Butter) Look at the figure Guns and Butter. Suppose the economy produced 8 guns and 12 pounds of butter per period.

• A)This is a possible choice but is inefficient.
• B)This combination invalidates the notion of increasing opportunity cost.
• C)The economy is still efficient but does not buy as much as it could.
• D)Something must be done to reduce the amount of employment.

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Definitions:

3-Month Sales

A measure of the total sales or revenue generated by a company or product within a three-month period.

Video Sales

The commercial activity of selling video content, including physical media like DVDs or digital downloads and streaming.

Proportionate Costs

Expenses that vary in relation to the level of activity or volume of output in a business, similar to variable costs.

Wholesale Costs

The price charged for goods or materials when sold in large quantities to retailers or other businesses, as opposed to retail prices charged to consumers.