Mass unemployment of resources means society operates inside its production-possibility frontier.

Question

Quizplus · Accepted Answer

When resources such as labor and capital are unemployed, it means that the economy is not producing at its full potential. This results in a situation where the society operates inside its production-possibility frontier, as there are still resources available that could be utilized to increase production and output. Therefore, the statement is true.

Mass Unemployment of Resources Means Society Operates Inside Its Production-Possibility