PPC is drawn assuming full employment of resources. When there is unemployment, the economy fails to utilize all available resources fully, so it produces less than its potential. The economy will operate at a point inside the PPC, not shift the curve itself. A shift occurs only when resources or technology change.
Identify the impact of unemployment on PPC (Production Possibility Curve).
CUET UG 2023 — Economics Micro
2023mcqmedium
Identify the impact of unemployment on PPC (Production Possibility Curve).
Official previous-year question
Verified 13 Jul 2026.
Options
- A
Leftward Shift in PPC
- B
Rightward Shift in PPC
- C
Movement along the same PPC
- D
Economy will operate inside the PPC
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