Guns or butter
From Conservapedia
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According to Investopedia: "The guns-and-butter curve is the classic economic example of the production possibility curve, which demonstrates the idea of opportunity cost.
In a theoretical economy with only two goods, a choice must be made between how much of each good to produce. As an economy produces more guns (military spending) it must reduce its production of butter (food), and vice versa."[1]
In a theoretical economy with only two goods, a choice must be made between how much of each good to produce. As an economy produces more guns (military spending) it must reduce its production of butter (food), and vice versa."[1]
The guns and butter economic concept describes the government allocation to defense spending versus social programs.[2]
Guns and butter curve
According to Investopedia: "The guns-and-butter curve is the classic economic example of the production possibility curve, which demonstrates the idea of opportunity cost. In a theoretical economy with only two goods, a choice must be made between how much of each good to produce. As an economy produces more guns (military spending) it must reduce its production of butter (food), and vice versa."[3]
External links
- What Does "Guns and Butter" Mean in Government Spending?, Investopedia
- Guns-and-Butter Curve: Definition and How It Works, Investopedia
- Guns Versus Butter Model, Quickonomics.com
References
- ↑ Guns-and-Butter Curve: Definition and How It Works, Investopedia
- ↑ What Does "Guns and Butter" Mean in Government Spending?, Investopedia
- ↑ Guns-and-Butter Curve: Definition and How It Works, Investopedia
