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Worksheets7.3 AL Efficiency and market failure
Total questions: 12
Worksheet time: 8mins
State of the economy in which production represents consumer preferences.
allocative efficiency
productive efficiency
The idea that products are being made at the lowest possible cost.
productive efficiency
allocative efficiency
Price signals tell us about consumers ...
wants.
spending power.
credit position.
cash position.
A desirable situation where resources are used for producing the particular types of goods and services that best satisfy society's needs and wants.
Allocative Efficiency
Technical Eficiency
Productive Efficiency
Possibility Efficiency
When is allocative efficiency achieved?
When marginal social cost = marginal social benefit
When suppliers produce at their minimum average costs of production
When MSB > MSC
Whenever supply exists
