An unemployment rate of 9 percent in Canada means:
A) that Canada is at a point to the right of its production-possibilities curve.
B) that population increases are necessary in order to reach maximum production.
C) that Canada can only be producing at a point on its production-possibilities curve if technological change occurs.
D) that Canada is producing at a point to the left of its production-possibilities curve.

Question

Quizplus · Accepted Answer

An unemployment rate of 9 percent indicates that not all resources, specifically labor, are being fully utilized. This means Canada is producing inside its production-possibilities curve, or to the left, indicating inefficiency.

An Unemployment Rate of 9 Percent in Canada Means