When Economists Talk About a Trade-Off Between "Guns and Butter

question 14

Multiple Choice

When economists talk about a trade-off between "guns and butter," they mean:

• A) Society can produce more military goods without giving up any consumer goods.
• B) Military goods are an inefficient use of resources.
• C) The production of more military goods may require fewer consumer goods.
• D) Consumer goods are always more costly than military goods.

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denotes the capacity to reason quickly and think abstractly, solving novel problems without relying extensively on learned knowledge and experience.

Crystallized Intelligence

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