When society must decrease the production of something in order to produce more of another good or service,society has necessarily achieved
A) only production efficiency.
B) only allocative efficiency.
C) both production efficiency and allocative efficiency.
D) a free lunch.
E) the maximum opportunity cost..

Question

Quizplus · Accepted Answer

This scenario describes production efficiency, where resources are allocated in the best way possible to produce one good without reducing the output of another. Allocative efficiency, on the other hand, is about producing the mix of goods and services most wanted by society, which is not specifically mentioned in this scenario.

When Society Must Decrease the Production of Something in Order