The "guns versus butter" dilemma that all nations confront is that
A)Guns and butter can be produced using the same resources at the same time.
B)An increase in national defense implies more sacrifices of civilian goods and services.
C)An increase in national defense is possible only if we produce more butter.
D)All of the choices are correct.

Question

Quizplus · Accepted Answer

The "guns versus butter" dilemma refers to the trade-off that a nation faces between investing in national defense (guns) and producing civilian goods and services (butter). The more resources a nation devotes to national defense, the fewer resources it has available to produce civilian goods and services. Therefore, an increase in national defense implies more sacrifices of civilian goods and services, making choice B the best option. Choice A is incorrect because guns and butter cannot be produced using the same resources without sacrificing one for the other. Choice C is incorrect because an increase in national defense cannot be achieved solely by producing more butter, and choice D is incorrect because not all choices are correct.

The "Guns Versus Butter" Dilemma That All Nations Confront Is