Which of the following is a “guns or butter” decision? A. A nation decides to produce fewer fighter jets and more bridges. B. A
nation shifts money from building railroads to building highways. C. A company decides to build armored tanks instead of bombs. D. A company chooses to make more cheese and less butter.
A nation decides to produce fewer fighter jets and more bridges
Explanation:
The issue of government choice between "weapons or butter" is a metaphor for governments' decisions about what to do with scarce public resources in times of war. Should governments invest in armaments or invest in internal needs, such as in infrastructure works? This is a trade-off, which consists of making a choice that excludes the other, even if it is possible to counterbalance the investments. In the case of the question, the trade of is between war fighters or between bridges - infrastructure for the country.
