Allocative efficiency is concerned with:

A) producing the combination of goods most desired by society.
B) achieving the full employment of all available resources.
C) producing every good with the least-cost combination of inputs.
D) reducing the concavity of the production possibilities curve.

Allocative Efficiency

A state of the economy in which production represents consumer preferences; in other words, when capital goods are distributed in the most beneficial manner among the population.

Production Possibilities Curve

A graphical representation that shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized.