Question

Full employment level of income of an economy is that level of income where:

• A. Labour is in full employment
• B. All means of production are fully employed
• C. Annual income of the economy is 5 trillion dollars
• D. All citizens have sufficient income

Hint:

Full employment occurs when an economy operates at its highest possible output, utilizing all its resources efficiently.

Answer 1

The Correct Option is B

Full employment refers to the utilization of all available resources, including labor and capital, to their maximum productive potential without unemployment.