Country X has a high unemployment rate.It follows that country X is operating
A) beyond its production possibilities frontier (PPF).
B) on its PPF.
C) inside (below)its PPF.
D) at a productive efficient point.
E) b and d

Question

Quizplus · Accepted Answer

If a country has a high unemployment rate, it means that there is a lack of demand for goods and services, which in turn means that the country is not producing at its maximum capacity. Therefore, the country is operating inside (below) its production possibilities frontier (PPF).

Country X Has a High Unemployment Rate