(Solved): (5) The economy of East Volta produces two goods, textiles, and agricultural products, using its av ...

(5) The economy of East Volta produces two goods, textiles, and agricultural products, using its available resources and technology. Now, consider the formation of a new government that creates a National Mining Company (NMC) to conduct mineral resources exploration. Suppose the NMC issues mineral leases to mining development companies for newly discovered mineral deposits of natural gas, oil, gold, and uranium. a. Use the PPF model to illustrate the impact of the newly discovered mineral deposits on the economy of East Volta. b. Suppose East Volta experiences a severe drought that hits farmlands in the Eastern part of the country. Use the PPF model to illustrate the impact on the economy of East Volta.