If an economy is being "allocatively efficient," then that means the economy is:
A) using the least costly production techniques.
B) producing the goods and services most wanted by society.
C) fully employing all economic resources.
D) maximizing the returns to factors of production.

Question

Quizplus · Accepted Answer

Allocative efficiency means that resources are allocated to produce the goods and services most wanted by society. This requires that the economy is producing at the point where marginal social benefit equals marginal social cost. Therefore, choice B is the correct answer.

If an Economy Is Being "Allocatively Efficient," Then That Means