Technological advance improves allocative efficiency by
A) enhancing monopoly power.
B) reducing income inequality.
C) giving society a more-preferred mix of goods and services.
D) encouraging saving.

Question

Quizplus · Accepted Answer

Technological advance can improve allocative efficiency by allowing society to produce a more-preferred mix of goods and services. This means that technological advances can result in more efficient production of goods that people want or need, which can lead to a higher standard of living for society as a whole. For example, technological advances in healthcare may result in improved medical treatments that are more effective and less expensive, resulting in a better mix of healthcare services for society overall.

Technological Advance Improves Allocative Efficiency by