If an economy is producing at full employment, it means that:

Question

Quizplus · Accepted Answer

Full employment means there is no involuntary unemployment, or in other words, all available resources are being utilized in the production process. This means the economy is operating at its maximum potential and producing at maximum efficiency. Therefore, option C is the correct answer. Options A and B are incorrect because they suggest there are idle resources or inefficiencies in the production process, which is not the case in a full employment scenario. Option D is incorrect because if the economy is producing at a point to the left of the production possibilities curve, it means it is not utilizing all available resources and is not producing at its maximum potential.

If an Economy Is Producing at Full Employment, It Means