Asked by Jasmine Nacole on Jul 20, 2024
Verified
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.
Production Possibilities Curve
A graphical representation showing the maximum quantity of two goods that can be produced with fixed resources and technology, demonstrating the trade-offs in production.
Unemployment
A condition where people who have the ability and desire to work are unable to secure jobs.
- Ascertain the significance of unemployment within an economy's capacity for production.
Verified Answer
JD
Joseph DelosJul 26, 2024
Final Answer :
A
Explanation :
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.
Learning Objectives
- Ascertain the significance of unemployment within an economy's capacity for production.
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