Definitions for "Allocative efficiency"
Refers to whether or not an allocation is efficient. A change from an allocation that is not efficient to one that is may be termed an "increase" in allocative efficiency.
An allocation of the mix of resources for maximal benefit, ie such that no change in spending priorities could improve the overall welfare.
the situation in which all the resources in an economy are fully and efficiently employed.
Keywords:  ppf, highly, able, ensures, achieved
The most highly valued combination of goods and services on the PPF. (p. 67)
is achieved when prices are close to cost, which ensures that all customers who value a product at more than its cost are able to purchase it and customers who value it at less than its cost do not purchase it.