Unemployment can be represented on a production possibilities graph by a point located:
A) anywhere on the graph.
B) on the production possibilities curve itself.
C) to the right of the production possibilities curve.
D) inside, or to the left of, the production possibilities curve.

Question

Quizplus · Accepted Answer

Unemployment in an economy means that not all resources are being used efficiently. On a production possibilities graph, this is represented by a point inside or to the left of the production possibilities curve, indicating that the economy is not producing at its maximum potential.

Unemployment Can Be Represented on a Production Possibilities Graph by a Point