Consider the graph of the production possibility frontier for country X. What would be a combination of watches and MP3 players that would meet the allocative efficiency of a country?
Any combination on the production possibilities frontier that brings the highest level of satisfaction to meet the needs of the people in the economy.
Combinations C or D because they represent a balanced quantity of watches and MP3 players.
Point G combination because it represents the combination with the highest number of watches and MP3 players.
Production Possibility Frontier – Country XA8GB15,710, 6Watches . daily productionCLL15,410, 4D18, 2m20, 0UT10152025MP3 Players – Daily production