On a production possibilities curve, unemployment is represented by: a. a point on the production...

Question:

On a production possibilities curve, unemployment is represented by:

a. a point on the production possibilities curve.

b. the points at which the production-possibilities curve touches each axis.

c. a point below or to the left of the production possibilities curve.

d. a point above and to the right of the production possibilities curve.

Production Possibilities Curve:

A production possibilities curve shows us all combinations of two goods we can produce given we are using all available resources. A production possibilities curve is often concave because of diminishing returns.

Answer and Explanation: 1

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Answer: C

When unemployment occurs, labor is not being used to its fullest. Thus, we are not using all available resources in the production of...

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Production Possibilities Curve: Definition & Examples

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Chapter 11 / Lesson 28
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Understand what the production possibilities curve is, and learn how to construct and interpret a production possibilities curve along with the example.


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