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:

Upper South

A term referring to the northern part of the Southern United States, characterized by a mix of agriculture and industrialization, especially prior to and during the Civil War.

Industrial Development

The process of industrialization whereby an economy is transformed from primarily agricultural to one based on the manufacturing of goods. Individual manual labor is often replaced by mechanized mass production.

Fugitive Slaves

Escaped slaves from Southern plantations seeking freedom in the North or Canada especially during the 19th century before the abolition of slavery.

Industrialized

Refers to the process by which an economy is transformed from primarily agricultural to one based on the manufacturing of goods. Individual manual labor is often replaced by mechanized mass production.