Exhibit 2-5
-Some of our farm fields are being left unused.Does this have any implications for the economy's PPF diagram (with agricultural products on one axis and all other products on the other axis)?
A)No implications,because the PPF deals only with resources in use.
B)The PPF cannot be drawn if some resources are idle.
C)With unemployed resources,we are at a point below the PPF.
D)The PPF would be upward sloping.

Question

Exhibit 2-5 
-Some of our farm fields are being left unused.Does this have any implications for the economy's PPF diagram (with agricultural products on one axis and all other products on the other axis)?
A)No implications,because the PPF deals only with resources in use. 
B)The PPF cannot be drawn if some resources are idle. 
C)With unemployed resources,we are at a point below the PPF. 
D)The PPF would be upward sloping.

Quizplus · Accepted Answer

With some farm fields being left unused, this means there are unemployed resources. This implies that we are operating at a point below the PPF, as we have resources that are not being fully utilized. This would shift the curve inward, creating a new PPF. Alternatively, we could reassign these resources to other sectors, in which case the PPF would shift outward, as we would have more resources available for production.

Exhibit 2-5 -Some of Our Farm Fields Are Being Left Unused.Does This