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

Question

Quizplus · Accepted Answer

Each point on a country's production possibilities boundary (PPB) is productively efficient because it represents the maximum output that can be produced with existing resources and technology, given a fixed level of inputs. However, it may not necessarily be allocatively efficient, meaning that the combination of goods produced is not the one that maximizes societal welfare or matches consumer preferences. Also, it may not necessarily be Pareto optimal, meaning that no one can be made better off without making someone else worse off. Therefore, options A, B, C, and D are not correct.

We Can Safely Say That Each Point on a Country's