(Figure: Guns and Butter) Look at the figure Guns and Butter.On this figure, points A, B, E, and
F:
A.indicate combinations of guns and butter that society can produce using all of its factors efficiently.
B.show that the opportunity cost of more guns increases but that of more butter decreases.
C.indicate that society wants butter more than it wants guns.
D.indicate constant costs for guns and increasing costs for butter.
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Q5: The models that economists construct:
A)usually make simplifying
Q9: (Table: Production Possibilities Schedule II) Look at
Q10: Q11: Figure: Guns and Butter Q14: The production possibility frontier illustrates that: Q15: The fact that a society's production possibility Q16: If an economy has to sacrifice increasing Q17: The importance of an economic model is Q25: If an economy has to sacrifice only Q34: Use the following to answer questions:
(Figure: Guns and Butter)
A)the economy
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