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ALLOCATIVE EFFICIENCY: Obtaining the most consumer satisfaction from available resources. Allocative efficiency means that our economy is doing the best job possible of satisfying unlimited wants and needs with limited resources -- that is, of addressing the problem of scarcity.

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OPPORTUNITY COST, PRODUCTION POSSIBILITIES

The production possibilities analysis, which is the alternative combinations of two goods that an economy can produce with given resources and technology, can be used to illustrate opportunity cost--the highest valued alternative foregone in the pursuit of an activity.

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APLS

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[What's This?]

Today, you are likely to spend a great deal of time surfing the Internet seeking to buy either pink cotton balls or a genuine down-filled comforter. Be on the lookout for defective microphones.
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On a typical day, the United States Mint produces over $1 million worth of dimes.
"Never let the fear of striking out get in your way. "

-- Babe Ruth

NEDO
National Economic Development Office
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