All points on the production possibility curve explain__________________?
Correct answer: B. Productive efficiency
- A. Allocative efficiency
- B. Productive efficiency
- C. Less than full use of resources
- D. Unattainable levels of output
Explanation
Every point on the production possibility curve represents productive efficiency because available resources are fully employed with existing technology. Allocative efficiency refers to selecting the preferred point on the curve, not every point.
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