_____ occur(s) when goods are produced at the lowest possible cost, and _____ occur(s) when individuals who desire a product the most receive those goods and services.
A) Production efficiency; allocative efficiency
B) Production possibilities; allocative possibilities
C) Allocative possibilities; production possibilities
D) Allocative efficiency; production efficiency

Question

Quizplus · Accepted Answer

Production efficiency occurs when goods are produced at the lowest possible cost, while allocative efficiency occurs when the goods and services are distributed to those who value them the most.

_____ Occur(s) When Goods Are Produced at the Lowest Possible