Allocative efficiency ensures that the goods and services in demand by society are produced.

Name: Allocative efficiency ensures that the goods and services in demand by society are produced.
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Question

Quizplus · Accepted Answer

Allocative efficiency means that resources are used to produce the goods and services that are most desired by society. This ensures that the economy is producing the right mix of goods and services that align with people's preferences and needs. Therefore, the statement is true.

Allocative Efficiency Ensures That the Goods and Services in Demand