Suppose that an economy, producing at point A on a production possibilities frontier, produces 500 units of good X and 300 units of good Y. Also suppose that, with the same resources and technology, the economy could produce at point B, which represents 800 units of good X and 450 units of good Y.True or False: It follows that when the economy is producing at point A, it is productive inefficient.True or False: It follows that when the economy is producing at point B, it is productive efficient.
