Question

Periods of less than full employment of resources correspond to ___________.

• A. points outside the PPC.
• B. points inside the PPC.
• C. points on the PPC.
• D. either points inside or outside the PPC.

Answer 1

Answer: (B)

points inside the PPC.

Period of less than full employment means 'unemployment' and in this case an economy operated inside the PPC, because if an economy produce on the PPC curve, it represents full employment of resources.