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

Question

Quizplus · Accepted Answer

Unemployment is described as producing at a point inside the PPF curve because it implies that there are unused resources and the economy is not producing at its full potential. This can occur due to various reasons such as cyclical downturns, structural shifts, or seasonal fluctuations.

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