e these os) to the duced when a country's Do the following activity to see if you understand the assumptions of the production possibilities. ACTIVITY 1 You are the President of Paradiso and have given instructions to your engineers to provide economists in the country with information on the production of guns and food in Paradiso so that they can construct a production possibilities curve for Paradiso. You receive the following information from the engineers: Resources used 20% 40% 60% 80% 100% Tons of food Number of guns 400 0,1 million 430 0,9 million 460 1,9 million 500 2,6 million 550 3,0 million What would your opinion as an economist be of the data provided by the engineers? a. b. C. The only useful information is that if Paradiso were to use 100% of its resources, it would be able to produce 550 tons of food and three million guns. The information would be sufficient to construct a production possibilities curve. The engineers misunderstood what would be required to construct production possibilities since this requires different combinations of guns and food that can be produced in Paradiso, if all the resources are used fully and efficiently. 59 ECS1501/001 ​