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Test: AP Macroeconomics
Use the following diagram to answer the questions below:

| 5. | If the lower diagram represents the marginal costs and marginal benefits of the consumer good to society, which of the following answers correctly represents the characteristics of the points on the production possibilities frontier? |
Point is neither productively efficient nor allocatively efficient
Point is an allocatively inefficient point but productively efficient point of production
Point is allocatively efficient but productively inefficient
Point is a point of allocative efficiency and productive efficiency
Point is a productively efficient point but allocatively inefficient point
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University of Ibadan, Ibadan, Nigeria, Bachelor of Science, Economics. University of Jos, Jos. Nigeria, Master's/Graduate, Ec...
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