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Use the following production schedule to answer the questions below. Combination Guns Butter tonnes A 0 2? B 20 25 C 50 19 D 85

Use the following production schedule to answer the questions below.

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Combination Guns Butter tonnes A 0 2? B 20 25 C 50 19 D 85 10 E 100 0 a) Plot the production possibilities curve based on the above production schedule. (5 Marks) b) What would be the opportunity cost of moving production from C to B and why? (2 Marks) c) What would be the opportunity cost of 85 guns and why? (3 Marks) d) On a graph piece of paper indicate a point X that shows widespread unemployment in this economy. (5 Marks) e) On a graph piece of paper indicate a point Y that indicates unattainable production. (5 Marks) f) Suppose the society experiences massive growth in the cow population resulting in corresponding production increases for all dairy products. Indicate how this change would shift the production possibilities curve. (5 Marks) g) Suppose that a number of workers in both the butter and gun industries become lazy on the job to protest working unfair working conditions. Indicate how this change would shift the production possibilities curve, and treat this change as independent from the change in part f)

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