Resource use is allocatively efficient when
A) we produce the goods with the highest opportunity cost.
B) we produce the goods with the lowest opportunity cost.
C) we cannot produce more goods and services.
D) we produce the amount of the different goods we value most highly.

Question

Quizplus · Accepted Answer

Allocative efficiency occurs when resources are used for producing the mix of goods and services most valued by society, which is what choice D describes.

Resource Use Is Allocatively Efficient When