Question

Which point on the PPF shows a "Productively efficient" level of output?

• A. a
• B. b
• C. c
• D. All of the above

Answer 1

The correct option is D All of the above

All the points that fall on a production possibility curve shows all different attainable combinations of the production of two commodities that can be produced in an economy with the given resources and technology which are to be fully utilized. Any point beyond and below the curve indicates over-utilization and under-utilization of resources respectively. Therefore, points A, B and C represents productively efficient level of output.