Unemployment and/or productive inefficiencies:
A)cause the production possibilities curve to shift outward.
B)can exist at any point on a production possibilities curve.
C)can both be illustrated by a point outside the production possibilities curve.
D)can both be illustrated by a point inside the production possibilities curve.

Question

Quizplus · Accepted Answer

Unemployment and/or productive inefficiencies both represent situations where an economy is producing inside its production possibilities curve. This implies that the economy is not using all of its available resources efficiently and is not producing at its maximum potential. Hence, they can be illustrated by a point inside the production possibilities curve.

Unemployment And/or Productive Inefficiencies