There is unemployment of resources when production is

1. Analyze the question The question asks where production is located when resources are unemployed (idle or underused). It tests your understanding of the Production Possibility Curve (PPC).

2. Explain the concept The PPC (also called the production possibility frontier) shows the maximum combinations of two goods an economy can produce when all its resources are fully and efficiently employed.

• On the curve: resources are fully employed and used efficiently.
• Inside (within) the curve: resources are unemployed or underemployed, so the economy is producing less than it could. This is inefficient.
• Outside the curve: the combination is unattainable with current resources and technology. It becomes possible only with economic growth.

3. Solution, step by step

• Unemployment of resources means some land, labour, or capital is idle.
• If resources are idle, the economy cannot reach its maximum output.
• Output therefore falls below the frontier, which means a point inside the PPC.

Checking the options:

• A. Within the PPC: correct. It shows idle resources and lost potential output.
• B. Outside the PPC: wrong, because this is unattainable at present.
• C. Along the PPC: wrong, because this is full employment and efficiency.
• D. Adequate to meet market demand: wrong, because this has nothing to do with resource employment.

4. Answer The correct option is A. within the production possibility curve.

5. Exam tip Remember: Inside = Idle, On = Optimal, Outside = Out of reach. Any JAMB question about unemployment or inefficiency with the PPC points to a spot inside the curve.