Final answer:
The statement that allocation cannot be manipulated is False. Parties involved can influence allocation through preferences and social decisions, affecting outcomes like allocative efficiency within a budget constraint or PPF.
Step-by-step explanation:
The statement that allocation is a mathematical procedure that cannot be manipulated by the parties involved in making the allocation is False.
While it's true that within the context of a budget constraint or a production possibilities frontier (PPF), choices are limited by available resources, the parties involved can influence allocation through their preferences and decisions.
For example, when choosing along a budget constraint, to increase the quantity of one good necessarily means decreasing the quantity of another due to limited income or resources.
Furthermore, allocative efficiency means that the specific choice along the PPF represents the allocation that society most desires, which implies social preference - and these preferences can and do change over time, thus possibly manipulating the allocation outcome.