1.

Consider the following table {:("Production Possibilities",A,B,C,D,E),("Guns (Units)",0,1,2,3,4),("Butter(Units)",10,9,7,4,0):} If at some other point say G, the economy produces 2 units of guns and 6 units of butter, then,

Answer»

It represent under-utilization of RESOURCES
Economy WOULD operate at a point below PPF
Both (a) and (b)
Neither (a) nor (b)

Solution :C.


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