When an economy is producing the mix of goods and service MOST desired by society,that economy is considered to be:

Question

Quizplus · Accepted Answer

Allocative efficiency is achieved when an economy produces the mix of goods and services that best satisfies the preferences of society. Productive efficiency, on the other hand, is achieved when an economy produces goods and services at the lowest possible cost, given the available technology and resources. Equitable outcomes refer to the fairness of the distribution of goods and services among members of society, which is not necessarily related to efficiency. Therefore, the best choice is C - allocatively efficient.

When an Economy Is Producing the Mix of Goods and Service