Question

According to the "guns and butter" example, if a country decides to spend more on military goods, which of the following will happen? (1 point) The country will have less money to devote to consumer goods. The country will have an equal amount of money to devote to consumer goods.

Answer 1

There will be an acute shortage of consumer goods within any country

Step-by-step explanation:

According to a particular example, if a country spends too much on Military goods there is a great shortage of consumer goods.

• The guns-and-butter curve postulates that if something else is given in return, you can only earn something.

• If a country can make only two types of goods, then the production of one thing has to reduce the production of the other.

• During the cold war, soviet union focused only on military goods in return they have to suffer from lack of food, healthcare, and education.