Question

multiple choice question
when resources are allocated in such a way that it is possible to increase the production of one good only by decreasing the production of another, then the allocation of resources is said to be ______.
○ efficient and productive
○ productive and allocative
○ productive and effective
○ efficient and optimal

Explanation:

The scenario describes productive efficiency, which exists when you cannot produce more of one good without reducing the output of another (no waste in production). Allocative efficiency relates to producing the right mix of goods, while the definition here specifically matches productive efficiency paired with the broader state of efficiency.

Answer:

O efficient and productive