Using the production possibilities frontier model, unemployment is described as producing at a point
A) inside the PPF curve.
B) on the exact middle of the PPF curve.
C) outside the PPF curve.
D) on either end of the PPF curve.

Question

Quizplus · Accepted Answer

Unemployment is described as producing at a point inside the PPF curve because it represents a situation where the economy is not utilizing all of its resources efficiently. This means that there are resources available that are not being used, resulting in a level of production that is lower than what is possible on the PPF curve.

Using the Production Possibilities Frontier Model, Unemployment Is Described as Producing