The point at which technical and allocative efficiency are achieved is called:
A)Input trade-off efficiency
B)Productivity
C)Financial productivity efficiency
D)Total productive efficiency

Question

Quizplus · Accepted Answer

Total productive efficiency is achieved when both technical (using resources in the most efficient way possible) and allocative (using resources to produce the most desired goods and services) efficiency are attained. This means that an economy is producing the maximum amount of goods and services with the given resources and technology, and the outputs are distributed in a way that maximizes consumer satisfaction.

The Point at Which Technical and Allocative Efficiency Are Achieved