Final answer:
The 3 P's of environmental sustainability are Profit, People, Planet, which align with economic, social, and environmental considerations. Productive efficiency is found on the PPF frontier while allocative efficiency reflects societal value choices. Policies vary in approach from command-and-control to market-oriented based on these values.
Step-by-step explanation:
The concepts of the 3 P's in environmental sustainability are embodied by the choice a. Profit, People, Planet. These three pillars represent a balanced approach to sustainability, emphasizing economic growth (Profit), social equity (People), and environmental protection (Planet). In conjunction with a Production Possibility Frontier (PPF), which illustrates the trade-offs between economic output and environmental quality, the 3 P's provide a framework for achieving sustainable development.
When examining a PPF graph, choices on the frontier indicate productive efficiency because they represent the maximum possible output for a given amount of inputs. Allocative efficiency, on the other hand, is achieved when an economy allocates its resources in such a way that it is producing the combination of goods and services most desired by society. Choices that reflect a society's preferred balance between environmental quality and economic output, such as choices K and L or Q and S in hypothetical PPFs, can be indicators of allocative efficiency.
An example of a choice that might represent a command-and-control environmental policy is one with strict environmental regulations resulting in lower economic output but higher environmental quality, such as T in the first PPF example. Conversely, a choice indicative of a market-oriented environmental policy may involve less regulation and more economic output but potentially lower environmental quality, such as P in the same example. Societies must carefully consider their values and preferences when making these complex decisions.