If an economy produces its most wanted goods but uses outdated production methods, it is:

Question

Quizplus · Accepted Answer

Outdated production methods imply that the economy is not utilizing the most efficient techniques available. Therefore, it is not achieving productive efficiency. Allocative efficiency, on the other hand, refers to the economy producing the products that society values most highly. The prompt suggests that the most wanted goods are being produced, so the economy may or may not be achieving allocative efficiency. However, the question specifically focuses on production methods, so the correct answer is B.

If an Economy Produces Its Most Wanted Goods but Uses