When an economy is producing the mix of goods and services MOST desired by society, that economy is considered to have

Question

Quizplus · Accepted Answer

Allocative efficiency means that the economy is producing the mix of goods and services that maximizes societal satisfaction or utility. It is the most desirable state for an economy because it ensures that resources are allocated to produce the goods and services that people value the most.

When an Economy Is Producing the Mix of Goods and Services