Use the following to answer questions :
Figure: Guns and Butter
-(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)indicate increasing opportunity costs for guns but decreasing opportunity costs for butter.
C)indicate that society wants butter more than it wants guns.
D)indicate constant opportunity costs for guns and increasing costs for butter.

Question

Use the following to answer questions :
Figure: Guns and Butter 
-(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)indicate increasing opportunity costs for guns but decreasing opportunity costs for butter. 
C)indicate that society wants butter more than it wants guns. 
D)indicate constant opportunity costs for guns and increasing costs for butter.

Quizplus · Accepted Answer

Points A, B, E, and F on the figure represent combinations of guns and butter that society can produce using all of its factors efficiently. These points lie on the production possibility frontier (PPF), which shows the maximum combinations of guns and butter that can be produced with the given resources and technology. Any point inside the PPF represents inefficient use of resources, while any point outside the PPF is currently unattainable given the available resources and technology. The best choice depends on society's preferences and needs.

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