Suppose there is some unemployment in the economy and society decides that it wants more of one good.Which of the following statements is true?
A)It is not possible to achieve this unless technology advances.
B)It can increase output without giving up another good by employing more resources.
C)It will have to increase resource supplies.
D)It will have to give up production and consumption of some other good.

Question

Quizplus · Accepted Answer

If there is unemployment in the economy, it means that there are resources that are not being utilized. By employing more of these resources, the economy can increase its output of the desired good without necessarily giving up the production of another good. This assumes that the economy is operating below its full potential and that there is room to increase production without sacrificing the production of another good. Therefore, option B is the correct choice. Option A is incorrect because technology may not be the limiting factor in this case. Option C is incorrect because the question does not specify what type of resource supply needs to increase. Option D is incorrect because it assumes that production of another good needs to be sacrificed, which may not necessarily be the case.

Suppose There Is Some Unemployment in the Economy and Society