Use the following to answer questions :
Figure 1-1
-Relative to frontier AE in Figure 1-1, which point shows unemployment (but not total unemployment)in the capital goods industry?
A)B.
B)D.
C)E.
D)H.
E)J.

Question

Use the following to answer questions :
Figure 1-1 
-Relative to frontier AE in Figure 1-1, which point shows unemployment (but not total unemployment)in the capital goods industry?
A)B. 
B)D. 
C)E. 
D)H. 
E)J.

Quizplus · Accepted Answer

Point H represents a situation where the economy is not producing at its full potential on the production possibility frontier (PPF), indicating underutilization of resources, which includes unemployment in specific sectors such as the capital goods industry.

Use the Following to Answer Questions