If an economy operates on its production possibility curve, then the allocation of resources in that economy satisfies:
A)allocative efficiency.
B)distributive efficiency.
C)Pareto efficiency.
D)productive efficiency.

Question

Quizplus · Accepted Answer

Operating on the production possibility curve indicates that the economy is using its resources efficiently to produce the maximum possible output, which is known as productive efficiency.

If an Economy Operates on Its Production Possibility Curve, Then