Use the following figure.

-Which combination of goods X and Y shows that the economy is experiencing unemployment, and which combination is out of reach of the economy?
A) A and D, respectively.
B) E and F, respectively.
C) F and A, respectively.
D) F and E, respectively.

Question

Use the following figure.

-Which combination of goods X and Y shows that the economy is experiencing unemployment, and which combination is out of reach of the economy?
A) A and D, respectively. 
B) E and F, respectively. 
C) F and A, respectively. 
D) F and E, respectively.

Quizplus · Accepted Answer

Combination E shows unemployment as it is within the production possibilities curve, indicating not all resources are being used. Combination F is out of reach as it lies outside the curve, indicating it cannot be produced with current resources.

Use the Following Figure