Use the Following to Answer Questions

question 173

Multiple Choice

Use the following to answer questions:
-(Figure: Guns and Butter) Use Figure: Guns and Butter.Suppose the economy produced 8 guns and 12 kilograms of butter per period.Given that,which statement is TRUE?

• A) This is a possible choice,but it 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.