Refer to Figure 2-11. This economy fully employs its resources when it produces 4000 shoes and zero t-shirts.

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Morgan Brown · Accepted Answer

Final Answer : True, Explanation :  The production possibilities curve (PPC) in Figure 2-11 shows that this economy can produce either 4000 shoes or zero t-shirts, or any combination of shoes and t-shirts that lies on the PPC. The point where the PPC intersects the vertical axis represents the maximum possible production of shoes (4000) when no t-shirts are produced. This point represents full employment of resources because all available resources are being used to produce shoes.

Refer to Figure 2-11. This economy fully employs its resources when it produces 4000 shoes and zero t-shirts.

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