If resources are allocated inefficiently, what can be said about the production of goods?

The assertion that one good can be increased without decreasing another when resources are allocated inefficiently is accurate because inefficient allocation indicates that resources are not being used in the most productive manner. This suggests that there are available resources or capabilities that are not being fully utilized.

In an inefficient allocation, it is possible to produce more of one good without sacrificing the production of another good. This occurs because the current distribution of resources does not align with the most productive uses; for example, labor or materials may be tied up in producing goods that could be made more efficiently elsewhere. Therefore, shifting those resources towards a more productive use can increase the output of one good without leading to a decrease in the output of another, at least until the allocation of resources reaches a more optimal level.

This perspective reveals the potential for economic improvement; the economy can grow and produce more overall by reallocating resources towards areas where they are more productive.