When goods and services are produced at the lowest possible cost,________ occurs.
A)allocative efficiency
B)productive efficiency
C)equity
D)efficient central planning

Question

Quizplus · Accepted Answer

Productive efficiency occurs when goods and services are produced at the lowest possible cost, meaning that no resources are wasted in the production process. This allows for the maximum output of goods and services to be produced with the available resources. Allocative efficiency, on the other hand, refers to the efficient allocation of resources to produce the goods and services that society demands. Equity refers to fairness and justice in the distribution of resources and outcomes. "Efficient central planning" is not a commonly used economic term and does not accurately describe a specific concept.

When Goods and Services Are Produced at the Lowest Possible