Allocative Efficiency Is Achieved When

question 186

Multiple Choice

Allocative efficiency is achieved when

• A)goods and services are fairly distributed among consumers in an economy.
• B)firms produce the goods and services that consumers value most.
• C)firms produce goods and services at the lowest cost.
• D)there are no shortages or surpluses in the market.

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Definitions:

Biological Needs

Essential physiological requirements that maintain life, such as the need for oxygen, food, water, and sleep.

Social Needs

Human needs that relate to interaction with others, including belonging, love, and affection, often positioned as essential for psychological well-being.

Motivation Theorists

Scholars and psychologists who study and explain the psychological processes that trigger, direct, and sustain human behavior towards attaining a goal.

Internal State

The condition or situation of an individual's inner self, typically referring to mental, emotional, or physiological status.