goods are "things" whose "consumption" will increase a person's welfare. think that resources are those "things" that can be used to produce (create) goods. suppose the economy is producing an output that lies below its production possibilities, like point Z in the graph on the first page of your study guide. why would that output be considered efficient?
Added by Margarita L.
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This could be due to factors such as unemployment, underutilization of capital, or inefficient allocation of resources. Show more…
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An economy will achieve productive efficiency when it ___ and will achieve allocative efficiency when it ___. s producing the combination of goods and services that most benefit the people in the economy; Is maximizing production and could not increase production of both goods at the same time. Is maximizing production and could not increase production of both goods at the same time; is producing the combination of goods and services that most benefit the people in the economy. Is maximizing production and could not increase production of both goods at the same time; is producing an equal amount of both goods. Is producing beyond the production possibility frontier; is producing inside the production possibility frontier.
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