5
QuizMultiple Choice

Opportunity Cost

Question 5 • LA-Financial Math A

The government of a country must make a decision between spending money on a hospital or spending the same amount on border security. What kind of decision is this?

Answer
A
guns or butter
B
decision at the margin
C
global trade-off
D
production efficiency decision

Explanation

This is a “guns or butter” decision: the government must choose between spending on security and spending on a public service. The same money cannot be used for both, so choosing border security means giving up the hospital spending, or vice versa.

AI-written and checked against the verified answer.

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