FIGURE 12- 3
-We can safely say that each point on a country's production possibilities boundary (PPB)is
A)allocatively efficient.
B)Pareto optimal.
C)one at which P = MC for all goods.
D)not productively efficient.
E)productively efficient.

Question

FIGURE 12- 3 
-We can safely say that each point on a country's production possibilities boundary (PPB)is
A)allocatively efficient. 
B)Pareto optimal. 
C)one at which P = MC for all goods. 
D)not productively efficient. 
E)productively efficient.

Quizplus · Accepted Answer

Each point on a country's production possibilities boundary represents the maximum possible combination of goods that can be produced with the given resources and technology. Therefore, any point on the PPB is productively efficient, as resources are being used to their fullest potential to produce the maximum output.