A society is productive inefficient when
A) it produces at a point inside or below its PPF.
B) it does not produce the maximum output with its given resources and technology.
C) it can produce more of one good without giving up some of another good.
D) both a and b
E) all of the above

Question

Quizplus · Accepted Answer

A society is productively inefficient when it is not using its resources to their full potential, which means it is producing inside or below its Production Possibility Frontier (PPF), not maximizing output with given resources and technology, and can produce more of one good without sacrificing another. All options describe aspects of productive inefficiency.

A Society Is Productive Inefficient When