Question

Suppose that an economy, producing at point A on a production possibilities frontier, produces 450 units of good X and 200 units of good Y. Also suppose that, with the same resources and technology, the economy could produce at point B, which represents 650 units of good X and 500 units of good Y?

Answer 1

Answer:

Productive efficiency and economic growth

Explanation:

This means the economy is able to achieve optimal combination of her productive input to achieve a maximum level of output at a lower cost.

The ability of an economy to increase the production of goods and services from the existing level of production to a higher level of output. without change in technology or increase in resources is called productive efficiency.

 

The technological advance reduced the amount of resources needed to produce 30

machines. These resources could be used to produce more food

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