Asked by Horacio Nicolas on Jun 22, 2024
Verified
Which one of the following is the most accurate?
A) In recent years our economy was at full employment until 2010.
B) Our economy operated outside of its production possibilities curve in 2009 and 2010.
C) Our economy is currently operating on its production possibilities curve.
D) Our economy is currently operation inside its production possibilities curve.
Production Possibilities Curve
A graph that shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized.
- Comprehend the correlation between one's job status and their place on the Production Possibility Frontier.
Verified Answer
KF
Karl Felicidario TabiosJun 24, 2024
Final Answer :
D
Explanation :
A production possibilities curve (PPC) shows the maximum combinations of two goods that can be produced with given resources and technology. If an economy operates on the PPC, it means that it is fully utilizing its resources and producing efficiently. If it operates inside the PPC, it means that it is not fully utilizing its resources and producing inefficiently. Therefore, option D is the most accurate as our economy is currently not operating at full capacity and is producing inside its PPC.
Learning Objectives
- Comprehend the correlation between one's job status and their place on the Production Possibility Frontier.