If there is unemployment in an economy,then the
A) production possibilities frontier will shift inwards.
B) economy is operating at an unattainable point.
C) production possibilities frontier will shift outwards.
D) economy is producing at a point inside the production possibilities frontier.
E) production possibilities frontier must be bowed inward.

Question

Quizplus · Accepted Answer

Unemployment indicates that not all resources in the economy are being utilized, which means that the economy is producing at a point inside the production possibilities frontier. This is represented by a point inside the curve, which indicates that the economy is not using all available resources to produce goods and services.

If There Is Unemployment in an Economy,then the