Explain Unemployment, Growth, and the Future

Question

Explain Unemployment, Growth, and the Future?

Answer 1

A. Unemployment and productive inefficiency occur when the economy is producing less than full production or inside the curve.

B. In a growing economy, the production possibilities curve shifts outward.

1. When resource supplies expand in quantity or quality.

2. When technological advances are occurring.

C. Present choices and future possibilities: Using resources to produce consumer goods and services represents a choice for present over future consumption.  It represents a choice for future over present goods by using resources to invest in education, technological advance, as well as capital goods.  The conclusion in the present will create more/less economic growth in the future as how to deal out resources.