ECONOMICS
PRODUCTIVITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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move resources between industries in response to changing patterns of consumer demand
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achieve maximum output from a given quantity of resources
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use resources with the least opportunity cost
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produce a given level of output with the lowest level of unemployment
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Detailed explanation-1: -What Is Allocative Efficiency? Allocative efficiency means the same thing as allocational efficiency, which comes about when services and goods marketed to consumers are distributed in a way that is beneficial not only to the sellers but also to the buyers.
Detailed explanation-2: -Allocative efficiency means that among the points on the production possibility frontier, the point that is chosen is socially preferred-at least in a particular and specific sense.
Detailed explanation-3: -Allocative efficiency occurs when goods and services are produced at the lowest cost and in the quantities that provide the greatest possible benefit.
Detailed explanation-4: -Some terms that encompass phases of economic efficiency include allocative efficiency, productive efficiency, distributive efficiency, and Pareto efficiency. A state of economic efficiency is essentially theoretical; a limit that can be approached but never reached.