Assume that a Country uses its resources to produce Guns and Shea Butter. The table below

shows a trade-off between the two products using all its resources at each point:

Point Production of Guns Production of Shea Butter

Quantity of Guns (in Number) Quantity of Shea Butter (in Pounds)

A 0 15

B 4 14

C 7 12

D 9 9

E 11 5

F 12 0

You are required to:

i. Identify all the possible types of resources used as inputs by the country in its production

of Guns and Shea Butter.

ii. State the rewards earned by each of these class of resources.

iii. Represent this information on a Production Possibility frontier (PPF) for that country with

the Quantity of Shea Butter on the vertical axis.

iv. Does the law of increasing opportunity cost exist as your firm as production moves from

point A to F? How?

v. Estimate that Marginal rate of transformation between each point.

vi. Outline any three (3) economic concepts that PPF model illustrates