Any point on the production possibility frontier is
A) attainable and might be allocatively inefficient.
B) attainable and must be allocatively efficient.
C) less production efficient than a point in the interior of the PPF.
D) always allocatively efficient but might or might not be production efficient.
E) always production efficient and always allocatively efficient.

Question

Quizplus · Accepted Answer

Points on the production possibility frontier (PPF) represent the maximum possible output combinations that can be produced with available resources and technology, indicating they are attainable. However, whether a point is allocatively efficient depends on the preferences of the society, meaning a point on the PPF might not be allocatively efficient if it does not align with the society's preference for the mix of goods and services.

Any Point on the Production Possibility Frontier Is