Questions: During World War II, the production of synthetic rubber increased dramatically in response to high natural rubber prices and the unstable supply of natural rubber. The new substitute allowed industries that used rubber, such as the tire industry, to achieve what type of efficiency? - allocative efficiency - production efficiency - distributive efficiency - both production and allocative efficiency

The answer is: both production and allocative efficiency.

Explanation for each option:

1. Allocative efficiency: This occurs when resources are distributed in a way that maximizes the benefit to society. In the context of synthetic rubber production during World War II, allocative efficiency would mean that the resources used to produce synthetic rubber were allocated in a way that met the high demand for rubber in industries like tire manufacturing, which was crucial for the war effort.

2. Production efficiency: This refers to the ability to produce goods at the lowest possible cost. The development and increased production of synthetic rubber allowed industries to continue their operations despite the high prices and unstable supply of natural rubber. This indicates that synthetic rubber production achieved production efficiency by providing a cost-effective alternative.

3. Distributive efficiency: This involves the optimal distribution of goods and services to consumers. While synthetic rubber production did help in meeting the demand, distributive efficiency is more about the end distribution to consumers, which is not the primary focus in this context.

4. Both production and allocative efficiency: The increased production of synthetic rubber during World War II allowed industries to maintain their operations efficiently (production efficiency) and ensured that the resources were allocated to meet the critical demand for rubber (allocative efficiency). Therefore, the correct answer encompasses both types of efficiency.

In summary, the production of synthetic rubber during World War II led to both production and allocative efficiency, as it allowed industries to produce rubber goods cost-effectively and ensured that the resources were used to meet the high demand for rubber during the war.