Final answer:
The mix of goods being produced that represents what society most desires when resources are distributed according to consumer demand is considered allocatively efficient.
Step-by-step explanation:
If an economy produces the desired mix of goods from its available resources, then this mix of goods is allocatively efficient. Allocative efficiency occurs when the specific choice along the production possibilities frontier (PPF) represents the allocation of resources and goods that society most desires. This means that producers are supplying the quantity of each product that consumers demand, which is exactly the outcome a society wishes for when it comes to the distribution of scarce resources. Not every point on the PPF curve that displays productive efficiency will also display allocative efficiency; it is a special point where the quantity of goods produced aligns perfectly with societal preferences.
Productive efficiency, on the other hand, means that more of one good cannot be produced without producing less of another, implying an economy is operating at its capacity. A choice is productively efficient if it lies on the PPF. However, only one of these productively efficient choices can be allocatively efficient. Equity, which is not addressed by either productive or allocative efficiency directly, pertains to the fairness with which resources are distributed among members of a society.