If an economy produces its most wanted goods but uses outdated production methods,it is:

A) achieving productive efficiency but not allocative efficiency.
B) not achieving productive efficiency.
C) achieving both productive and allocative efficiency.
D) engaged in roundabout production.

Allocative Efficiency

A state of the economy in which production is in line with consumer preferences; every good or service is produced up to the point where the last unit provides a benefit to consumers equal to the cost of producing it.

Production Methods

Various techniques and processes used to create goods and services.