With respect to a PPF for goods X and Y,productive efficiency implies that in order to produce more of good X there will be a reduction in production of good Y.

Question

Quizplus · Accepted Answer

Productive efficiency means producing the maximum possible output of both goods given the resources available. Therefore, if one wants to produce more of good X, the production of good Y will have to decrease in order to use those resources to produce more of good X. This can be shown by moving along the PPF towards the production of more X and less Y.

With Respect to a PPF for Goods X and Y,productive