Allocative Efficiency Occurs When

question 52

Multiple Choice

Allocative efficiency occurs when

• A) we cannot produce more of any good without giving up some other good that we value more highly.
• B) we cannot produce more of any one good without giving up some other good.
• C) marginal benefit exceeds marginal cost.
• D) opportunity costs are decreasing.

---

Definitions:

Linguistic Fluency

The ability to speak or write a language smoothly, easily, and with agility, exhibiting proficient use of grammar, vocabulary, and syntax.

Reaction Range Model

A theory suggesting that genetics set a range for potential development, while the environment determines where within that range an individual falls.

Intellectually Enriched

Describes an environment or condition that stimulates cognitive growth and development through exposure to diverse and challenging materials and experiences.

Intensity

The magnitude or strength of a phenomenon, such as sound, light, or physical force, often described in terms of levels or degrees.