If There Is Unemployment and All Businesses Are Operating at Less

question 145

Multiple Choice

If there is unemployment and all businesses are operating at less than full capacity, then

• A) there are too many workers, and some people ought to leave the labor force.
• B) we are not experiencing a net social cost to unemployment because it is offset by the capacity levels of the factories.
• C) society is producing inside its production possibilities curve.
• D) society is at the wrong point on the production possibilities curve.