In terms of the production possibilities curve,productive efficiency is represented by
A) a rightward shift in the PPC.
B) a leftward shift in the PPC.
C) all points on the PPC.
D) all points inside the PPC.
E) all points outside the PPC.

Question

Quizplus · Accepted Answer

Productive efficiency is represented by all points on the PPC, as producing at any point on the curve means that all resources are fully employed and allocated in the most efficient way possible. Any point inside or outside the curve represents an inefficient use of resources. Shifts in the PPC represent changes in available resources or technology, but do not necessarily indicate productive efficiency.

In Terms of the Production Possibilities Curve,productive Efficiency Is Represented