Asked by Bryce Takeyama on Jul 13, 2024
Verified
If a major union goes on strike, then the country would be operating inside its production possibilities frontier.
Production Possibilities Frontier
A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources, technology).
Strike
A work stoppage caused by the mass refusal of employees to work, usually in an attempt to gain better wages or working conditions.
- Apprehend the role of unemployment and economic growth in determining the production capabilities of an economy.
Verified Answer
TA
Tatiana ArbelaezJul 19, 2024
Final Answer :
True
Explanation :
When a major union goes on strike, it leads to a reduction in labor force participation in certain industries or sectors, causing a decrease in production. This results in the country operating inside its production possibilities frontier (PPF), as it is not utilizing all available resources (in this case, labor) to their fullest potential, thereby not achieving maximum possible output.
Learning Objectives
- Apprehend the role of unemployment and economic growth in determining the production capabilities of an economy.
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