Question

Where would you plot full employment on a production possibilities frontier?

a point on the PPF

a point beyond the PPF

a point below the PPF

No answer text provided.

Answer 1

Production possibility frontier(PPF) shows combination of good that can be produced when resources are used fully and efficiently.

Hence Any point on PPF represents allocation where resources are used fully and hence there we will lot full employment on PPF. Hence option (a) is correct

Thus , when it is produced inside the PPF this means that resources are unemployed and hence option (c) is incorrect.

Any point outside PPF is unattainable and hence this is also incorrect.

Hence, the correct answer is (a) a point on the PPF.