Which of the following is a TRUE statement? Explain why. 1. If for a PPF, there is allocative efficiency then there must also be production officiency 2. If for a PPF, there is productive efficiency then there must also be allocative efficiency

Which of the following is a TRUE statement? Explain why. 1. If for a PPF, there is allocative efficiency then there must also be production officiency 2. If for a PPF, there is productive efficiency then there must also be allocative efficiency

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter2: Production Possibilities Frontier Framework

Section: Chapter Questions

Problem 7WNG

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Which of the following is a TRUE statement? Explain why.

1. If for a PPF, there is allocative efficiency then there must also be production officiency
2. If for a PPF, there is productive efficiency then there must also be allocative efficiency

Definition Definition Curve that represents the various combinations of production possibilities of two commodities when resources or factors of production are given.

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