19
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Question 19 • LA-Financial Math A

According to the “guns or butter” example, if a country decides to spend more on military goods, which of the following will happen?

Answer
A
The country will have less money to devote to consumer goods.
B
The country will have an equal amount of money to devote to consumer goods.
C
The country will be forced to make trade-offs in military purchasing.
D
The country will have more resources to devote to consumer goods.

Explanation

A country has limited resources, so spending more on military goods leaves fewer resources available for other goods. In the “guns or butter” example, that means less money can be devoted to consumer goods. The best answer is “The country will have less money to devote to consumer goods.”

AI-written and checked against the verified answer.

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