Social Sciences and History / Unit 13 SSH 1209 short lesson, about 20 seconds
Productive Against Allocative Efficiency
Captions available
The idea
Every point on the frontier is productively efficient: it is impossible to produce more of one good without producing less of the other. Allocative efficiency is the one point that matches the mix of goods society most desires.
In practice
Two farms fully worked; one grows what the town wants.
Where people slip
Productive is about waste; allocative is about preference.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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