Allocative Efficiency Occurs When It Is

question 208

Multiple Choice

Allocative efficiency occurs when it is

• A) possible to produce more of one good without giving up the production of some other good.
• B) possible to produce more of all goods.
• C) not possible to produce more of one good without giving up the production of some other good that is valued less highly.
• D) not possible to produce more of one good without giving up the production of some other good that is valued more highly.

---

Definitions:

Log Transformation

A mathematical operation that replaces a variable with the logarithm of that variable to help normalize data or manage skewed distributions.

Arcsin Transformation

A data transformation technique used to stabilize the variance when the data follow a binomial distribution.

Categorical Variable

A variable that can take on one of a limited, and usually fixed, number of possible values, assigning each individual to a particular group or nominal category.

Quantitative Variable

A type of variable that represents measurable quantities and can be expressed in numeric values.