Question

Economics: What are the potential tradeoffs and opportunity costs in a country if you choose to spend more on guns than on butter?

Answer 1

The meaning of guns and butter is an economic policy choice of whether a nation is increasingly keen on burning through cash on war or taking care of its people.

trade-off: If you put more cash toward weapons then you are surrendering another advantage which is a trade-off.

opportunity costs: As an economy delivers more weapons (military spending) it must diminish its creation of bread and butter (food), and the other way around.