Unemployment or underemployment of labor might explain why an economy would be operating inside its production possibilities curve (PPC).

Question

Quizplus · Accepted Answer

If there is unemployment or underemployment of labor, it means that not all available resources are being used to produce goods and services. This would result in the economy operating inside its production possibilities curve, as it is not producing at its maximum potential due to the lack of utilization of resources.

Unemployment or Underemployment of Labor Might Explain Why an Economy