At point d in the above figure, the average product of labor equals

Even though points inside a production possibilities curve are attainable, why are they not preferred?

What will be an ideal response?

Which of the following statements applies to the classical system?

a. There is money wage inflexibility since full employment already existed b. A perfectly flexible money wage is not always a requirement for full employment c. Full employment was easily explained with downward money wage rigidity d. An imperfect market structure is requirement for full employment e. none of the above