Final answer:
The correct option: using part-time workers
Idle production capacity can be reduced by using part-time workers, allowing existing personnel to work overtime, or implementing a compressed workweek to balance labor with production needs, particularly during uncertain economic times.
Step-by-step explanation:
Idle production capacity can be combated by adjusting labour to match the demand for a company's products or services. One strategy is to use part-time workers, who offer a flexible workforce to increase production without the commitment of full-time salaries and benefits. Another approach is allowing personnel to work overtime, which provides immediate temporary labor without the need for hiring additional staff. Lastly, firms could decrease the number of workdays per week but increase the hours per day, known as adopting a compressed workweek, which can reduce overhead costs and maintain production levels while giving employees longer periods of time off.
During a recession, a business may hesitate to hire additional full-time personnel due to economic uncertainties, incurring high costs from recruiting and training, and the fear of having to lay them off if the recession continues. Moreover, government policies, recognizing the ecological and social benefits, may support reducing work hours to distribute work among more people instead of creating unnecessary jobs, thereby lessening the environmental impact and mitigating unemployment.