Question

In: Economics

What is the connection between North Korea's missile program and its hunger problem? How does this...

What is the connection between North Korea's missile program and its hunger problem? How does this relate to the production possibilities frontier?

Solutions

Expert Solution

The connection between North Korea's missile program and its hunger problem can be explained by guns and butter curve.

Since its inception, North Korea has isolated itself from the rest of the nations and in order to protect itself from its neighbours, the country has heavily invested in military programs focused on inventing advanced artillery and missiles.
This has led to huge crisis in food security sector, malnutrition is pretty common there, famines and floods are common there, a devastating famine in 90s killed almost half a million population of North Korea.

The guns and-butter curve is the great financial case of the creation plausibility bend, which exhibits the possibility of chance expense. In a hypothetical economy with just two merchandise, a decision must be made between the amount of every great to deliver. As an economy creates more weapons (military spending) it must lessen its creation of margarine (food), and the other way around.

On the off chance that a country decides to concentrate on military development, the main route for its residential creation should be met is through a general height of creation. Such an expansion would take into consideration nonmilitary items and necessities to flourish. However, it likewise implies the size and extent of military creation would heighten thusly. Keeping up such raised creation so as to address the two issues can end up being burdening on an economy.


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