Answer only two of the following questions in no-less than one paragraphs each:

Question #1: Explain the differences between productive efficiency and allocative efficiency.

Question #2: Explain why individuals make choices that are directly on the budget constraint, rather than inside the budget constraint or outside it.

Question #3: Explain why societies cannot make a choice above their production possibilities frontier and should not make a choice below it.

Question #4: Why is a production possibilities frontier typically drawn as a curve, rather than a straight line?