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AP® Macroeconomics

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Moderate

PP Curve and Efficiency

APMACR-PEYZYG

Suppose a production possibilities curve showed bikes and banjos.

If the economy was at productive efficiency but not in allocative efficiency then

A

the curve would actually be drawn as a straight line.

B

the curve would be drawn bowing in toward the center.

C

the curve would bow out at center.

D

the production of the economy would be demonstrated on the production possibilities frontier.

E

the production of the economy would be shown below the production possibilities frontier.