A reduction in the level of unemployment would have which effect with respect to the nation's production possibilities curve?
A. It would shift the curve to the left.
B. It would not shift the curve; it would be represented by moving from a point inside the curve toward the curve.
C. It would not shift the curve; it would be represented by moving from a point on the curve to a point to the right of the curve.
D. It would shift the curve to the right.

Question

10-09-2020
Business

contestada

A reduction in the level of unemployment would have which effect with respect to the nation's production possibilities curve?
A. It would shift the curve to the left.
B. It would not shift the curve; it would be represented by moving from a point inside the curve toward the curve.
C. It would not shift the curve; it would be represented by moving from a point on the curve to a point to the right of the curve.
D. It would shift the curve to the right.

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Answer:

B. It would not shift the curve; it would be represented by moving from a point inside the curve toward the curve.

Explanation:

Here the falling in unemployment represents that there is a movement with respect to the resources that are fully employed.

In this the unemployment means that it could be occured inner side of the PPF but if there is an increase, so the point of the production would be moved inner of the PPF to the PPF

Therefore the option B is correct