What occurs when production reflects consumer preferences?
A)Allocative efficiency
B)Productive efficiency
C)Equity
D)Efficient central planning

Question

Quizplus · Accepted Answer

Allocative efficiency occurs when production reflects consumer preferences, meaning that resources are being used to produce goods and services that people actually want and need. This leads to a more efficient allocation of resources and a better match between supply and demand, resulting in higher levels of satisfaction for both producers and consumers.

What Occurs When Production Reflects Consumer Preferences