Obtaining the maximum well-being from producing the right set of goods and services is known as:
A) allocative efficiency.
B) allocative effectiveness.
C) productive efficiency.
D) productive effectiveness.

Question

Quizplus · Accepted Answer

Allocative efficiency occurs when the production of goods and services is in accordance with consumer preferences, ensuring maximum well-being by allocating resources to produce the mix of goods and services most desired by society.

Obtaining the Maximum Well-Being from Producing the Right Set of Goods