Inefficient allocation of resources occurs when
A)no one can be made better off without having someone else give up something.
B)it is possible to make some people better off without making others worse off.
C)society is operating at a point high on the production possibilities frontier.
D)society is operating at a point low on the production possibilities frontier.

Question

Quizplus · Accepted Answer

Inefficient allocation of resources occurs when it is possible to make some people better off without making others worse off, indicating that resources are not being used in the most effective way to maximize overall welfare. This situation suggests that improvements in allocation can lead to Pareto improvements, where at least one individual can benefit without any detriment to others.

Inefficient Allocation of Resources Occurs When