Allocative Efficiency Occurs When

question 274

Multiple Choice

Allocative efficiency occurs when

• A) production is allocated equally among all citizens.
• B) people who want a product the most get it.
• C) goods are produced at the lowest possible cost.
• D) resources are equally allocated between the private and public sectors of the economy.

---

Definitions:

Infinite

Without limit or end; often used in mathematics and physics to describe quantities or concepts that extend beyond any finite boundary or size.

Terms

Terms and conditions outlined within a contract or agreement.

Redeemed

The process of exchanging a financial instrument or coupon for its value in money or goods.

Inflation

The speed at which the overall price level of goods and services increases, leading to a decrease in buying power.