Which of the Following Best Describes Allocative Efficiency

question 13

Multiple Choice

Which of the following best describes allocative efficiency?

• A) Producing a medical service at the lowest possible cost.
• B) Constructing a new medical facility to exactly offset a market shortage of such services.
• C) Increasing the amount of hospital beds available such that each person in the population served has a bed allocated to him/her.
• D) None of the above.
• E) More than one of the above statements is true.

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Definitions:

Absolute Advantage

The capacity of a person, company, or nation to generate a greater quantity of a product or service using an identical quantity of inputs as compared to competitors.

Broccoli

A green plant from the cabbage family, known for its nutritional benefits and widely consumed as a vegetable.

Opportunity Cost

The cost attached to not opting for the immediately lesser favorable choice when making a decision.

Russia

A country in Eurasia, the world's largest by land area, known for its significant contributions to arts, science, and global politics, as well as its rich cultural heritage.