Question

Allocatively efficient points are

Select all that apply:
a. also productively efficient
b. most desired by society
c. most cost efficient
d. all of the above

Answer 1

Allocative efficiency means that the particular combination of goods and services on the production possibility curve that a society produces represents the combination that society most desires.

Step-by-step explanation:

Allocative efficiency means that the particular combination of goods and services on the production possibility curve that a society produces represents the combination that society most desires. How to determine what a society desires can be a controversial question, and is usually a discussion in political science, sociology, and philosophy classes as well as in economics. At its most basic, allocative efficiency means producers supply the quantity of each product that consumers demand. Only one of the productively efficient choices will be the allocatively efficient choice for society as a whole.