Allocative Efficiency Occurs When

question 102

Multiple Choice

Allocative efficiency occurs when

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

---

Definitions:

Title Transfer

The legal process of changing the ownership of a property from one person or entity to another, typically involving the execution of a deed or similar document.

Ruined Gas

Gasoline that has become contaminated or degraded, making it unusable for its intended purpose.

Payment

The transfer of money, goods, or services in exchange for a product, service, or fulfillment of a legal obligation.

Sole Proprietorship

A business where the sole owner is responsible for the management and the debts of the business.