introduction , meaning ,terminology, economic efficiency ,model of efficiency,type of efficiency ,sufficient condition ,key concepts,monopoly and allocative inefficiency ,failure of efficiency ,key concept, summary etc.
4. TERMINOLOGY USED IN TOPIC
โข EFFICIENCY -Efficiency is the ability to avoid
wasting materials, energy, efforts, money, and
time in doing something or in producing a desired
result. In a more general sense, it is the ability to
do things well, successfully, and without waste
โข ECONOMIC-the branch of knowledge concerned
with the production, consumption, and transfer
of wealth.
โข VALUATION-an estimation of the worth of
something, especially one carried out by a
professional valuer
5. โข STATIC-lacking in movement, action, or change,
especially in an undesirable or uninteresting way.
โข ALLOCATIVE-Allocative efficiency is a state of the
economy in which production represents
consumer preferences; in particular, every good
or service is produced up to the point where the
last unit provides a marginal benefit to
consumers equal to the marginal cost of
producing
โข relating to the allocating of resources or funds to
a particular area or for a particular purpose.
โข "free market mechanisms may be vital for
allocative efficiencyโ
โข PRODUCTIVE -producing or able to produce large
amounts of goods, crops, or other commodities.
6. โข MONOPOLY-the exclusive possession or control
of the supply of or trade in a commodity or
service.
โข "the state's monopoly of radio and television
broadcastingโ
โข DYNAMIC-(of a process or system) characterized
by constant change, activity, or progress."a
dynamic economyโ
โข PARETO-denoting or involving the theories and
methods of the Italian economist and sociologist
Vilfredo Pareto (1848โ1923), especially a formula
used to express the income distribution of a
society.
25. SUMMARY
โข Economic efficiency is different than most
traditional measures of WUE โ it is a set of
conditions, not a quantity measured on a
scale of 0-100% Indicators of economic
efficiency can be developed, but all have pros
and cons 5