When the mix of goods and services produced is just what the society desires,then we have:

Question

Quizplus · Accepted Answer

Allocative efficiency occurs when the mix of goods and services produced is what the society desires, i.e., resources are allocated in a way that maximizes social welfare. This is considered the ideal outcome in a market economy, where resources are directed towards the production of goods and services that are most highly valued by consumers. Socialism and communism, on the other hand, refer to different economic systems that prioritize collective ownership of the means of production and distribution, while production efficiency is concerned with maximizing output given available resources. Therefore, the correct answer is D, allocative efficiency.

When the Mix of Goods and Services Produced Is Just