Question

Unemployment

A.causes the production possibilities curve to shift outward.
B.can exist at any point on a production possibilities curve.
C.is illustrated by a point outside the production possibilities curve.
D. is illustrated by a point inside the production possibilities curve

Answer 1

Unemployment is illustrated by a point inside the production possibilities curve, as it represents a situation where the economy is not utilizing all available resources and producing below its maximum potential output.

Step-by-step explanation:

Unemployment can be illustrated by a point inside the production possibilities curve. The production possibilities curve represents the alternative combinations of goods and services an economy can produce at a given time with limited resources. Unemployment occurs when the economy is not utilizing all available resources, resulting in a point inside the curve. At this point, the economy is producing below its maximum potential output.