If an economy produces the desired mix of goods from its available resources,then this mix of goods is:
A)allocatively efficient.
B)both productively and allocatively efficient.
C)productively efficient.
D)neither productively nor allocatively efficient.

Question

Quizplus · Accepted Answer

Allocative efficiency occurs when an economy produces the desired mix of goods and services from the available resources. This means that resources are allocated in a manner that satisfies the preferences of consumers and maximizes their overall welfare. Therefore, if an economy is producing the desired mix of goods, it is allocatively efficient.

If an Economy Produces the Desired Mix of Goods from Its