Ensuring the right type of products are produced is referred to as _________ efficiency.
A)Technical
B)Economic
C)Allocative
D)Productive

Question

Quizplus · Accepted Answer

Allocative efficiency refers to the production of the right combination of goods that society wants and needs, at the lowest possible cost. This means that resources are allocated towards the production of goods that provide the most value to society, rather than being wasted on goods that don't meet the needs and wants of the market. This is different from productive efficiency, which refers to producing goods at the lowest possible cost, and technical efficiency, which refers to maximizing the output from a given set of resources. Economic efficiency is a broader term that encompasses both allocative and productive efficiency.

Ensuring the Right Type of Products Are Produced Is Referred