Principles of Macroeconomics / Unit 1 MAC 0023 short lesson, about 20 seconds
Efficiency and Full Employment
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The idea
Production is efficient when no more of one good can be made without less of the other: every point on the frontier. Full employment means no factor sits idle.
In practice
Idle workers or idle factories put the economy inside the curve.
Where people slip
An economy can also fall inside the curve while fully employed, by putting resources where they have no comparative advantage.
Your place on the trail
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