1. I believe in this context that a "project" is anything you're building on the planet tiles. Some "galactic wonders" are also dubbed "projects" of various types, but they're just one of many things you build with social production. Military production is only used for building ships.

2. All of your research and production costs you BC. So, for ex, producing 1 research point costs you 1 BC. If you have a lab structure producing 10 points of research, it's costing you 10 BC to produce it.

Unused military production is used towards social projects, and vice versa (in DA at least - and there's a small icon in the production "box" you can hover over that'll indicate this is happening). If you aren't building anything at all (no ships, no planet tiles being built/improved) you are refunded some of the production cost the planet is "wasting" (but I don't think it's a full refund).

Economy in GalCiv is somewhat complex and somewhat quirky, especially at first til you get used to it, I suppose. It's also a hot topic of debate for some (myself included).

Press F4 to adjust tax rate, adjust industrial capacity (ideal to be 100%), and adjust your balance of "spending" between military, social, and research.

One thing to keep in mind that building a lab or factory isn't instant production. If a given structure says it can produce X of something, what it really means is that it has the potential to produce X. What it actually produces is based on a variety of factors, from industrial capacity, the spending sliders, racial bonuses, starbase bonuses, planetary focus, etc. Regardles - you pay BC for the production.

Better wording would be that the:
The production capability represented by the shields / hammers goes unused, but you don't pay for it, either.

(No offense, Iztok - I was worried about confusing him with the word "lost".)

BTW, fight,
Iztok knows the GalCiv production system better than anyone. Search for his thread, "Production explained - how various bonuses apply" (https://forums.galciv2.com/?forumid=346&aid=152796)to see the most available detail about how production works.

drrider

There is no symantic conflict between "very well..." and "better than anyone". I stand by my statement.   

drrider

Oops. Delete me please.