Read each question and choose the best answer.

Question

The phrase "guns or butter" expresses the idea that
A. individuals, businesses, and governments all face trade-offs.
B. factor resources are limited.
C. government decisions involve opportunity cost.
D. government decisions involve trade-offs between military and domestic needs.

Answer 1

The phrase "guns or butter" expresses the idea that:

D. government decisions involve trade-offs between military and domestic needs.

This phrase highlights the trade-off that governments face when allocating resources between defense (guns) and consumer goods or welfare (butter).