Figure 2-14
-Refer to Figure 2-14.When this economy produces 30 doghouses and 25 dishwashers there is full employment.

Question

Figure 2-14 
-Refer to Figure 2-14.When this economy produces 30 doghouses and 25 dishwashers there is full employment.

Quizplus · Accepted Answer

The economy is not necessarily at full employment just because it produces 30 doghouses and 25 dishwashers. Full employment occurs when all available resources (labor, capital, etc.) are being utilized efficiently. In this scenario, we don't know if there are any unemployed resources or if there is any potential for increased production.

Figure 2-14 -Refer to Figure 2-14.When This Economy Produces 30 Doghouses and 30