When the united states entered world war ii it faced the huge task of preparing for war. consumer goods were in short supply and ration coupons were issued to limit purchases of these goods. explain the period during world war ii in terms of a production possibilities model?

The production possibilities model represents the opportunity cost faced in production activities in terms of resources dedicated. Two different goods are put in relation by a curve that informs, according to the resources available, how much quantity of good B has to be discarded in order to produce a certain amount of good A.

When the US entered WWII had to decide on whether to dedicate the limited productive factors (land, labor and capital) and raw materials to produce weapons or other types of consumer goods. This is known as the Guns-and-Butter Curve.

When the US joined WWII, weapon manufacturing was necessary to prepare the army adequately, hence this brought scarcity of other goods and rationing became necessary.

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