

Ch32 Efficiency and market failure
Flashcard
•
Social Studies
•
12th Grade
•
Practice Problem
•
Hard
Chloe Zhang
FREE Resource
Student preview

11 questions
Show all answers
1.
FLASHCARD QUESTION
Front
What is economic efficiency?
Back
Economic efficiency is achieved when scarce resources are used in the most efficient way to maximise output.
2.
FLASHCARD QUESTION
Front
What is productive efficiency?
Back
Productive efficiency occurs when a firm is producing at the lowest possible cost.
3.
FLASHCARD QUESTION
Front
What is allocative efficiency?
Back
Allocative efficiency occurs when firms are producing those goods and services most wanted by consumers. It is achieved when price is equal to marginal cost.
4.
FLASHCARD QUESTION
Front
What is Pareto optimality?
Back
Pareto optimality is achieved when it is impossible to make someone better off without making someone else worse off.
5.
FLASHCARD QUESTION
Front
What is dynamic efficiency?
Back
Dynamic efficiency is a long-run concept and is when resources are allocated efficiently over time.
6.
FLASHCARD QUESTION
Front
What is market failure?
Back
Market failure is a situation where the free market does not make the best allocation of scarce resources. Neither productive nor allocative efficiency is being achieved.
7.
FLASHCARD QUESTION
Front
What are examples of market failure?
Back
Typical examples of market failure are where a government provides public goods or finds it necessary because of information failure to provide merit goods and regulate the production and consumption of demerit goods.
Access all questions and much more by creating a free account
Create resources
Host any resource
Get auto-graded reports

Continue with Google

Continue with Email

Continue with Classlink

Continue with Clever
or continue with

Microsoft
%20(1).png)
Apple
Others
Already have an account?