Question

If a government engages in war and spends a great deal of money on military and defense, domestic matters such as education and social services will likely receive less funding. which principle of economics does this situation demonstrate?

Answer 1

The situation demonstrates the principle of opportunity cost in economics.

Step-by-step explanation:

The situation described in the question demonstrates the principle of opportunity cost in economics. Opportunity cost refers to the idea that when a government allocates a significant amount of funding to military and defense, there is a trade-off, and other domestic matters such as education and social services will receive less funding. In this case, the government is prioritizing the military over other social programs.