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.

Question

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.

Quizplus · Accepted Answer

This combination is possible but inefficient because it likely lies inside the production possibility frontier, indicating that resources are not being fully utilized.

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