Allocative Efficiency in Economics: Definition & Example

Instructions:

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question 1 of 3

What type of products are made using the principle of allocative efficiency?

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1. When is the decision of whether or not a product is a good idea considered during allocative efficiency?

2. When allocative efficiency is not achieved is it considered wasteful?

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About This Quiz & Worksheet

This quiz and worksheet will assess your understanding of allocative efficiency in economics. You will need to also have a firm grasp on topics like products that are made with the principle of allocative efficiency.

Quiz & Worksheet Goals

Use these assessment tools to:

  • Determine when a product is considered as a good idea
  • Understand what happens when allocative efficiency is not achieved
  • Recognize production that is myopic in nature with regard to the demands of society
  • Identify when allocative efficiency is achieved

Skills Practiced

This worksheet and quiz let you practice the following skills:

  • Reading comprehension - ensure that you draw the most important information from the related lesson on allocative efficiency
  • Critical thinking - apply relevant concepts to examine information about the demands of society in a different light
  • Information recall - access the knowledge you've gained regarding when a product is considered a good idea during allocative efficiency

Additional Learning

To learn more about allocative efficiency, review this lesson called Allocative Efficiency in Economics: Definition & Example. The lesson covers the following objectives:

  • Define allocative efficiency
  • Contrast and compare marginal benefit and marginal cost
  • Identify the purpose of allocative efficiency
  • Determine the principles of allocative efficiency
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