If the unemployment rate is 30% the economy is...a)outside ppc b)on ppc c)inside ppc.?

Question

If the unemployment rate is 30% the economy is...a)outside ppc b)on ppc c)inside ppc.?

Answer 1

The economy is inside the PPC

because the unemployed resources could have been utilised to produce larger quantity of output of at least one of the goods without decreasing the quantities of output of all other goods. - the 30% unemployed labor even in the absence of addotional capital could have been used to produce some output (assuming that the marginal productivity of labor has not become zero in the production of at least in the case of one good). So, the economy's efficient output level would be higher than the output produced keeping 30% of workforce unemployed). So, the economy's output with 30% unemployment is not efficient point. However if marginal productivity of labor is zero in the production of all goods and services, the economy is in the ppc.

Answer 2

c)inside ppc

Because economy isn't producing at potential capacity level with such unemployment rate.