What is "Guns or Butter"? Also what is a Production Possibilities curve? I'm a bit confused. Thank you so much whoever is answering this question (:

Answer 1

The term "guns or butter" expresses the concept that a nation can choose whether to buy weapons for war or to provide for its own citizens.

Study these sites for information about a production possibilities curve.

http://en.wikipedia.org/wiki/Production-possibility_frontier

http://krypton.mnsu.edu/~renner/ppc.htm