When it is impossible to reorganize economic resources so that at least one person is better off while nobody is worse off,we have attained
A) allocative efficiency.
B) productive efficiency.
C) absolute advantage
D) comparative advantage.
E) a point outside the production possibilities curve.

Question

Quizplus · Accepted Answer

Attaining allocative efficiency means that resources are allocated in a way that maximizes the overall welfare of society. When it is impossible to reorganize resources so that at least one person is better off without making someone else worse off, this means that resources are already allocated in the most efficient manner possible, and no further improvement can be made without causing harm to others. Therefore, this situation represents allocative efficiency.

When It Is Impossible to Reorganize Economic Resources So That