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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.

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