An efficient allocation of resources occurs when we
A) produce the goods and services that people need.
B) cannot produce more of a good or service without giving up some other good or service that we value more highly.
C) produce the goods and services that people want.
D) cannot produce more of a good or service without giving up some other good or service that we need.

Question

Quizplus · Accepted Answer

An efficient allocation of resources is achieved when it is not possible to produce more of one good or service without sacrificing the production of another good or service that is valued more highly, indicating that resources are being used in a way that maximizes the value of output. This concept is related to the idea of opportunity cost and the production possibilities frontier, where efficiency is represented by points on the frontier itself.

An Efficient Allocation of Resources Occurs When We