In the figure above,production efficiency occurs at ________,and allocative efficiency occurs at ________.
A) all points on the PPF; only one point on the PPF
B) only one point on the PPF; all points on the PPF
C) only one point on the PPF; only one point on the PPF
D) all points on the PPF; all points on the PPF
E) all points on the PPF; all points above the PPF

Question

Quizplus · Accepted Answer

Production efficiency occurs at all points on the Production Possibility Frontier (PPF) because all resources are fully and efficiently utilized. Allocative efficiency occurs at only one point on the PPF, where the mix of goods being produced represents the preference of society.

In the Figure Above,production Efficiency Occurs at ________,And Allocative Efficiency