Full employment is a situation wherein all available resources (labour, capital,
land, and entrepreneurship) are used to produce goods and services. This goal
is typically indicated in terms of the employment of labour resources (measured
by the unemployment rate). However, all resources in the economy—labour,
capital, land, and entrepreneurship—are important for achieving this goal. If
the resources are not fully employed, then they are not producing to the limit
of their potential and consumer satisfaction is not fully achieved. |