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Productive and Allocative Efficiency
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Productive and Allocative Efficiency
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1. Introduction to Macroeconomics / Productive and Allocative Efficiency / Problem 2
Problem 2
Can a point be allocatively efficient but not productively efficient on a PPF?
A
Yes, allocative efficiency does not depend on productive efficiency.
B
No, allocative efficiency requires productive efficiency.
C
Yes, they are independent of each other.
D
No, they are unrelated.
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