On a production possibilities frontier (PPF) that shows the trade-off between consumer goods and capital goods given a fixed amount of labour, unemployment is illustrated by:

Question

BlackTom AI · Accepted Answer

On a PPF, points inside the curve represent inefficient use of resources, such as unemployment.

1) Relevant knowledge points and concepts
- The production possibilities frontier (PPF) traces maximum feasible combinations of two goods given fixed resources and technology.
- Points on the PPF represent full employment and productive efficiency (no idle resources).
- Points outside the PPF are unattainable with current resources/technology.
- Points inside the PPF indicate inefficiency: some resources (labour, capital) are unused or misallocated, which includes unemployment.

2) Step-by-step reasoning
- The question fixes labour and asks how unemployment is illustrated. Unemployment means labour is not being employed to produce the maximum possible output.
- If labour is unemployed, the economy cannot reach its full-production combinations on the frontier; actual output will be below potential.
- Therefore the economy will be at a point inside the PPF, representing lower output of one or both goods than is possible with full employment.

3) Calculations / intermediate illustration
- Suppose the frontier shows a maximum of 100 units (total capacity) at some combination. If unemployment causes actual production to be 80 units, the unused capacity equals 100 − 80 = 20 units. This shortfall is represented by a point inside the frontier relative to the frontier’s possible maximum.

4) Why the correct answer is correct
- A point within the frontier directly signals unused resources or inefficiency, which corresponds to unemployment of labour. It visually and conceptually matches the definition of unemployment on the PPF.

5) Why the other options are incorrect
- b. A point outside the frontier is unattainable with given resources/technology, not a sign of unemployment.
- c. Movement from one point on the frontier to another is reallocation of resources at full employment (opportunity cost), not unemployment.
- d. Movement from within the frontier to the frontier represents reducing unemployment (using idle resources), not the illustration of unemployment itself.

6) Conclusion
- The correct choice is a. a point within the frontier. This matches the provided answer.

On a production possibilities frontier (PPF) that shows the trade-off between consumer goods and capital goods given a fixed amount of labour, unemployment is illustrated by:单项选择题

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