Answers:- 1.a) Underemployed are those person in the labor force who are presently employed into a job, however, the person is underutilized. Contrary to this, marginal attachments refers to those person, who do not provide any active participation in the labor force, however they are deliberately looking for work in the coming days (Neff, 2017). Thus, underemployed people can be treated as employed, however the marginal attachment workers will ...Read More >>
Answers: 1. a. A PPC (Rittenburg & Tregarthen) is bowed out due to increasing opportunity costs of producing a good. Consider X and Y. This means that to produce more of X we must reduce Y as our resources are fixed. We have to move from point A to B. To produce 1 more X, we have to pull out resources ( like labor ) from Y and put them into factories for X. We reduce Y as shown by red line as we move from A to B to get 1 more...Read More >>
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