Allocative efficiency occurs when
A) the most highly valued goods and services are produced.
B) all citizens have equal access to goods and services.
C) the environment is protected at all cost.
D) goods and services are free.
E) production takes place at any point on the PPF.

Question

Quizplus · Accepted Answer

Allocative efficiency occurs when the most highly valued goods and services are produced. This means that resources are allocated in a way that maximizes satisfaction for consumers and producers, and that the economy is producing goods and services that people want the most.

Allocative Efficiency Occurs When