Unemployment of half the workers in an economy would be shown by

an inward shift of the PPCCorrect answerYour answera point on the PPCCorrect answerYour answera point inside the PPCCorrect answerYour answeran outward shift of the PPCCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

The workers still exist; they are only idle. The capacity, and so the curve, is unchanged.
Producing below capacity puts the economy at a point inside its PPC.

Worth noting

The PPC shifts in only when resources are lost, as in a war or disaster; idle resources are a point inside it.

Concept: Unemployment versus loss of resources
Typical timeTypical: 100 s
Your timeYours: —

The rule this testsThe production possibility curve

Practise this chapter →

Ten questions from Central Problems & the PPC, at your own pace.

Practise this chapter →

Ten questions from Central Problems & the PPC, at your own pace.

Practise this chapter All 87 questions in Central Problems & the PPC Revise the notes for Central Problems & the PPC

Unemployment of half the workers in an economy would be shown by

Explanation