Guns and butter are used to represent the classic societal tradeoff between spending on
A)durable and nondurable goods.
B)imports and exports.
C)national defense and consumer goods.
D)law enforcement and agriculture.

Question

Quizplus · Accepted Answer

Guns represent national defense spending and butter represents spending on consumer goods. This tradeoff is often discussed in macroeconomic analysis as a way to show the opportunity cost of prioritizing one type of spending over the other.

Guns and Butter Are Used to Represent the Classic Societal