Using the production possibilities frontier model, unemployment is described as producing at a point
A) on the exact middle of the PPF curve.
B) on either end of the PPF curve.
C) inside the PPF curve.
D) outside the PPF curve.

Question

Quizplus · Accepted Answer

Unemployment is described as producing at a point inside the Production Possibilities Frontier (PPF) curve because it indicates that not all resources are being used efficiently, and the economy is not operating at its full potential.

Using the Production Possibilities Frontier Model, Unemployment Is Described as Producing