What Is Allocative Efficiency

question 11

Multiple Choice

What is allocative efficiency?

• A)It refers to a situation in which resources are allocated to their highest profit use.
• B)It refers to a situation in which resources are allocated such that goods can be produced at their lowest possible average cost.
• C)It refers to a situation in which resources are allocated such that the last unit of output produced provides a marginal benefit to consumers equal to the marginal cost of producing it.
• D)It refers to a situation in which resources are allocated fairly to all consumers in a society.

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Definitions:

Psychoanalysis

A method of therapy and theory of personality developed by Sigmund Freud, emphasizing unconscious motives and conflicts.

Social Learning Theory

A theory which suggests that people learn new behaviors and attitudes through observing the behavior of others and the outcomes of those behaviors.

Orthodox Behaviorism

A branch of psychology that studies behavior as an observable entity without reference to mental states or internal processes.

Motivation, Thought, And Emotion

The interconnectedness of an individual's drive, cognitive processes, and feelings that guide behavior.