Economic Efficiency — definition?
Maximizing output and satisfaction with limited resources.
Resource Allocation — role?
Decides how scarce resources are distributed among uses.
Economic Efficiency — definition?
Maximizing output and satisfaction with limited resources.
Resource Allocation — role?
Distributes scarce resources among uses.
Productive Efficiency — when?
At lowest possible average cost.
Allocative Efficiency — when?
When resources match consumer preferences.
Market Failure — impact?
Prevents efficient resource allocation.
Scarce Resources — significance?
Require optimal allocation to meet needs.
Optimal Resource Allocation — goal?
Maximize societal benefit.
Answer 8 questions on Achieving Economic Efficiency.
1. What does economic efficiency primarily refer to?
2. What does market failure prevent in the context of resource allocation?
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