Question 6

Which option best describes allocatively inefficiency in a market?

"Social efficiency" seems to be the correct option. A further explanation is given below.

Explanation:

This is already defined as social productivity or efficiency, as customer choice or requirement or desire is taken into account as a key motivating power for the manufacture or sales of products and services.The prices of goods and products are based on the choice or desires of the customer. Commodities are manufactured in this economic situation up to the mark or stage at which something unit of items & services provides a positive revenue equivalent to the marginal expense of output of these units.

Ithink its 3! hope it : -)