At full employment,a society produces
A) somewhere within its production possibilities frontier (PPF).
B) somewhere outside its PPF.
C) at the origin on its PPF graph.
D) on its PPF.
E) only one good.

Question

Quizplus · Accepted Answer

At full employment, a society produces on its PPF because all of its resources are being utilized efficiently to produce goods and services. Points outside the PPF represent a level of production that is not attainable with current resources and technology. The origin of the PPF represents an inefficient use of resources and production levels below the society's potential. Only producing one good is not efficient and does not represent full employment.

At Full Employment,a Society Produces