Use the following to answer question(s):
Exhibit: Guns and Butter

-(Exhibit: Guns and Butter) 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 as more of each good is produced..
C) indicate that society wants butter more than guns.
D) indicate constant costs for guns and increasing costs for butter.

Question

Use the following to answer question(s): 
Exhibit: Guns and Butter
 
-(Exhibit: Guns and Butter) 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 as more of each good is produced.. 
C) indicate that society wants butter more than guns. 
D) indicate constant costs for guns and increasing costs for butter.

Quizplus · Accepted Answer

Point A indicates the combinations of guns and butter that society can produce using all its factors efficiently, meaning it is the point of maximum production efficiency. Therefore, it is the best choice.

Use the Following to Answer Question(s)