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-(Figure: Guns and Butter)Use Figure: Guns and Butter.If the economy is operating at point B,producing 16 guns and 12 pounds of butter per period,a decision to move to point E and produce 18 pounds of butter:
A)indicates that you can have more butter and guns simultaneously.
B)makes it clear that this economy has decreasing opportunity costs.
C)necessitates a loss of 8 guns per period.
D)necessitates a loss of 4 guns per period.

Question

Use the following to answer question:

-(Figure: Guns and Butter)Use Figure: Guns and Butter.If the economy is operating at point B,producing 16 guns and 12 pounds of butter per period,a decision to move to point E and produce 18 pounds of butter:
A)indicates that you can have more butter and guns simultaneously. 
B)makes it clear that this economy has decreasing opportunity costs. 
C)necessitates a loss of 8 guns per period. 
D)necessitates a loss of 4 guns per period.

Quizplus · Accepted Answer

Moving from point B to E increases butter production but requires a reduction in gun production, specifically from 16 to 8 guns, indicating a loss of 8 guns per period.

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