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 a nation faces when deciding how to allocate its resources between military defense (guns) and domestic goods and services (butter). Increasing military defense usually means diverting resources away from domestic goods and services, leading to a decrease in their production. Therefore, an increase in national defense implies more sacrifices of civilian goods and services. Option A is incorrect because it assumes that guns and butter can be produced simultaneously using the same resources, which is not always the case. Option C is incorrect because an increase in national defense does not necessarily require an increase in butter production. Option D is incorrect because it includes all choices, whereas only option B is the best choice.

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