All points on the PPF are points of _______efficiency.When we produce at the point on the PPF that we prefer above all other points we achieve _______ efficiency.
A)allocative; allocative
B)allocative; production
C)productive; prominent
D)unattainable; attainable
E)production; allocative

Question

All points on the PPF are points of  _______efficiency.When we produce at the point on the PPF that we prefer above all other points we achieve _______ efficiency.
A)allocative; allocative
B)allocative; production
C)productive; prominent
D)unattainable; attainable
E)production; allocative

Quizplus · Accepted Answer

The first part of the statement refers to "production efficiency," which means that an economy is producing at a point on its production possibility frontier (PPF), indicating that it cannot produce more of one good without producing less of another. The second part refers to "allocative efficiency," which occurs when the economy produces at a point on the PPF that reflects consumer preferences, maximizing overall satisfaction.

All Points on the PPF Are Points of _______Efficiency