1.1

static efficiency

refers to efficiency at a point in time; split into allocative and productive efficiency

allocative efficiency

occurs when a specific combination of goods is efficient for society.

because it is specific, it refers to a point on the ppf not the whole curve

so not every point on the ppf is allocatively efficient

productive efficiency

-with all available inputs and tech. it is impossible to produce more of one good without decreasing the quantity of another good being produced

=every point on ppf is productively efficient

positive statements

objective, factually based comments that can be tested

not influenced by the opinions or prejudice of people

allow scientific testing to take place that can be accepted or rejected

normative statements

subjective,questionable comments which are difficult to test

influenced by the opinion or prejudice of people

require value judgements

value judgements

a statement that has been put forward by an individual that cannot be verified factually