How Can a Decrease in the Unemployment Rate from 21

question 86

Multiple Choice

How can a decrease in the unemployment rate from 21 percent to 17 percent be illustrated?

• A) as an inward shift of the production possibilities curve
• B) as a movement from a point outside the production possibilities curve to a point farther from the production possibilities curve
• C) as an outward shift of the production possibilities curve
• D) as a movement from a point inside the production possibilities curve to a point closer to the production possibilities curve

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Definitions:

Economic Profit

The difference between total revenues and total costs, including both explicit and implicit costs.

Allocation of Resources

The process of distributing scarce resources among different uses and users.

Resource Use

The manner in which natural resources are exploited and utilized to meet human needs or economic applications.

Economic Profit

The difference between the total revenue generated by a business and the total costs, both explicit and implicit, including opportunity costs.