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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 8
Problem 8
How are productive and allocative efficiency related on a PPF?
A
Allocative efficiency is necessary for productive efficiency.
B
They are unrelated.
C
They occur at different points on the PPF.
D
Productive efficiency is necessary for allocative efficiency.
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