In an economy, unemployment exists only at points that are on the interior of the production possibilities frontier.

Name: In an economy, unemployment exists only at points that are on the interior of the production possibilities frontier.
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Unemployment exists when the economy is not producing at its full potential, which is represented by the production possibilities frontier. Points on the interior of the frontier represent underutilization of resources, including labor, which leads to unemployment.

In an Economy, Unemployment Exists Only at Points That Are