The existence of unemployment can be illustrated on a production possibilities curve by a(n)
A)point below or inside the surface of the curve.
B)inward shift of the curve.
C)movement down along the curve if consumer goods are represented on the vertical axis and capital on the horizontal axis.
D)movement up along the curve if consumer goods are represented on the vertical axis and capital on the horizontal axis.

Question

Quizplus · Accepted Answer

Unemployment indicates that the economy is not operating at its full potential, and therefore, is below or inside the production possibilities curve. This means that some resources are not employed to their maximum capacity, leading to a point inside the curve or below it.

The Existence of Unemployment Can Be Illustrated on a Production