2Which of the following would not shift the Production Possi

2.Which of the following would not shift the Production Possibilities Frontier outward?

3.Productive efficiency tells us

e.that we should produce inside the nation\'s Production Possibilities Frontier.

4.A country achieves allocative efficiency when

5.Comparative advantage

Solution

2) Reducing unemployment and other resource missallocations would not shift the PPF outward. (Option e, it would mean a movement towards a point on PPF)

3) Productive efficiency tells us the production choices available that fully use our resources. (Option b)

4) A country achieves allocative efficiency when it produces the combination of goods and services it values most highly. (Option a)

5) Comparative advantage is when one party has a lower opportunity cost than another in producing a good or service. (Option a)