The diagram illustrates the production possibility curve for a successful transition economy as it shifts from point X to point Y over time. While the country is going through the transition, the population showed a clear preference for greater privatisation. What happens to economic efficiency as a consequence of the move from point X to point Y?
- Aproductive efficiency increases; allocative efficiency decreases
- Bproductive efficiency increases; allocative efficiency increases
- Cproductive efficiency unchanged; allocative efficiency decreases
- Dproductive efficiency unchanged; allocative efficiency unchanged