(Figure: Guns and Butter) Use 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

Benjamin Gabler · Accepted Answer

Final Answer : A, Explanation :  A represents combinations of guns and butter that society can produce using all of its factors efficiently. This is because A lies on the Production Possibility Frontier (PPF), which represents the maximum possible output combinations that a society can produce with its given resources and technology, showing that all resources are being used efficiently.

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