Although the United States hardly produces any coffee, it is able to acquire various types of coffee from other countries to satisfy the desires of every American coffee drinker. This example best represents _____ efficiency.

Question

Quizplus · Accepted Answer

Allocative efficiency refers to the efficient allocation of resources to meet the desires and preferences of consumers. In this example, the United States is able to acquire various types of coffee from other countries to satisfy the desires of every American coffee drinker, indicating allocative efficiency in the coffee market. This does not necessarily relate to production efficiency, Pareto efficiency, or marginal efficiency.

Although the United States Hardly Produces Any Coffee, It Is