Question

if an economy is producing at full employment, it means that: a. the economy is producing at a point that is to the right of the production possibilities curve. b. the economy is producing along its production possibilities curve. c. there are idle resources in this economy. d. the economy is producing at a point that is to the left of the production possibilities curve.

Explanation:

Full employment in an economy means all available resources are being used efficiently to produce goods and services. Points along the production possibilities curve (PPC) represent maximum efficient output with no idle resources. Points left of the PPC mean unused resources, and points right are unattainable with current resources.

Answer:

b. the economy is producing along its production possibilities curve.