When the individuals who get a good or service are the ones who desire that product the most, the economy is experiencing
A) allocative efficiency.
B) production efficiency.
C) equity.
D) deflation.

Question

Quizplus · Accepted Answer

Allocative efficiency occurs when resources are allocated in a way that maximizes the satisfaction of consumers. In this case, the individuals who desire the product the most are the ones who receive it, which indicates that resources are being allocated efficiently towards meeting consumer preferences.

When the Individuals Who Get a Good or Service Are