Economics
Textbooks
Boundless Economics
Competitive Markets
Long-Run Outcomes
Economics Textbooks Boundless Economics Competitive Markets Long-Run Outcomes
Economics Textbooks Boundless Economics Competitive Markets
Economics Textbooks Boundless Economics
Economics Textbooks
Economics
Concept Version 7
Created by Boundless

Allocative Efficiency

Final goods

Final goods

When an economy has allocative efficiency, it produces goods and services that have the highest demand and that society finds most desirable. For example, for the U.S. to achieve an allocative efficient market, it would need to produce a lot of coffee.

Source

    Boundless vets and curates high-quality, openly licensed content from around the Internet. This particular resource used the following sources:

    "All sizes | Ti(RED) | Flickr - Photo Sharing!."
    http://www.flickr.com/photos/hryckowian/3084169856/sizes/m/in/photostream/ Flickr CC BY.

Related Terms

  • Allocative efficiency
  • Subjects
    • Accounting
    • Algebra
    • Art History
    • Biology
    • Business
    • Calculus
    • Chemistry
    • Communications
    • Economics
    • Finance
    • Management
    • Marketing
    • Microbiology
    • Physics
    • Physiology
    • Political Science
    • Psychology
    • Sociology
    • Statistics
    • U.S. History
    • World History
    • Writing

    Except where noted, content and user contributions on this site are licensed under CC BY-SA 4.0 with attribution required.