A society must decide whether to produce more military goods or more consumer goods. This choice is referred to as "guns or butter." Which of the following is not an example of "guns or butter"? The U.S. federal government cuts education funding in order to reallocate the funds to the military. Australia distributes government funds to its military and social programs equally. Denmark stays out of military conflicts in order to provide for its people rather than its army. Germany's federal government gives additional funding to health care while reducing its military spending.

The 'guns or butter' model is an example of a simple production possibility frontier. It…

Answered: A society must decide whether to…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A society must decide whether to produce more military goods or more consumer goods. This choice is referred to as "guns or butter." Which of the following is not an example of "guns or butter"?

	The U.S. federal government cuts education funding in order to reallocate the funds to the military.
	Australia distributes government funds to its military and social programs equally.
	Denmark stays out of military conflicts in order to provide for its people rather than its army.
	Germany's federal government gives additional funding to health care while reducing its military spending.