When production reflects consumer preferences, ________ occurs.
A)allocative efficiency
B)productive efficiency
C)equity
D)efficient central planning

Question

Quizplus · Accepted Answer

Allocative efficiency occurs when production reflects consumer preferences, meaning that the resources are allocated in a way that best satisfies the wants and needs of the consumers. This leads to the production of goods and services that are in high demand and have a greater value to society.

When Production Reflects Consumer Preferences, ________ Occurs