Suppose a nation has a total of 12 units of labor, which can be used to produce either guns or butter. One gun takes 6 units of labor to produce and 1 butter takes 2 units of labor to produce. •...

Extracted text: Suppose a nation has a total of 12 units of labor, which can be used to produce either guns or butter. One gun takes 6 units of labor to produce and 1 butter takes 2 units of labor to produce. • Explain why scarcity exists in this economy. Use the data as evidence of your reasoning. • What is the maximum quantity of guns that can be produced? • What is the maximum quantity of butter than can be produced? • Draw the nation's production possibility curve. • What is the opportunity cost of guns in this nation? • Explain why the nation can't produce both 3 guns and 4 butters. Explain why the nation shouldn't produce both I gun and 2 butters.