Allocative Efficiency First two questions deal with allocativeefficiency. The best way to allocate resourcesto different consumption uses. Given the resources, find the combination ofmedical and non-medical goods to be produced. Once the resources in medical care sector hasbeen determined, determine the combination ofmedical goods and services to be produced. Given the resources we have, what is the bestmix? Should dollars be pent on inpatient care or outpatientcare? Prevention versus treatment?