Allocative Efficiency Occurs When

question 228

Multiple Choice

Allocative efficiency occurs when

• A) marginal social cost exceeds marginal social benefit.
• B) marginal social benefit exceeds marginal social cost.
• C) marginal social benefit equals marginal social cost.
• D) total social benefit exceeds total social cost.

---

Definitions:

Georg Simmel

A German sociologist and philosopher known for his works on social structure, the sociology of religion, and the philosophy of money, considered one of the early pioneers in urban sociology.

Large City

An urban area with a sizable population, usually featuring complex structures for governance, and varied social, cultural, and economic activities.

Suburbanization

The shift of large segments of population away from the urban core and toward the edges of cities.

Urban Core

The central, innermost part of a city, characterized by high population density, significant infrastructure, and the primary business district, often contrasted with suburban or rural areas.