economic inefficiency definition
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Inefficiency 1 Economic inefficiency-refers to a situation where we could be doing a better job, i.e., attaining our goals at lower cost. 2  It is the opposite of economic efficiency.
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production possibility frontier Definition. PPF. A curve that compares the trade offs between two goods produced by an economy in order to demonstrate the efficient use of resources. Points along the curve are considered efficient and obtainable, and show the maximum amount of one good that can be produced in relation to another.
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Definitions &Translations In economics, underemployment can refer to: Overqualification or overeducation, or the employment of workers with high education, skill levels, or experience in jobs that do not require such abilities.
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- See In-not, and Efficacy.] Lack of power to produce the desired or proper effect; inefficiency; ineffectualness; futility; uselessness; fruitlessness; as, the inefficacy of medicines or means. [1913 Webster] The seeming inefficacy of censures. --Bp. Hall.
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Income and substitution effect Income and substitution effect. Definition of income effect: An increase in price reduces a consumer’s buying power, effectively reducing the consumer’s income and causing the consumer to buy less of at least some goods.
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Macroeconomics - the economy is employing all of its available resources. The use of all available resources to produce want-satisfying goods and services. - Human-made resources (buildings, machinery, and equipment) used to produce goods and services; goods that do not directly satisfy human wants; also called capital goods.
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Definition of 'inefficient' A person, organization, system, or machine that is inefficient does not work in the most economical way. ...the closure of inefficient factories. American English: inefficient
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- Functional obsolescence is defined as the impairment of functional capacity or efficiency that reflects the loss in value brought about by such factors as overcapacity, inadequacy, excess operating costs, and changes in the art.unctional obsolescence can be further broken down into curable and incurable obsolescence. Curable obsolescence is a deficiency of an asset that can be remedied through addition or modernization. An example of this would be the replacement and update of a machine's computer numeric control (CNC).
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economics. fundamental finance .com When a price ceiling is set, a shortage occurs. For the price that the ceiling is set at, there is more demand than there is at the equilibrium price. There is also less supply than there is at the equilibrium price, thus there is more quantity demanded than quantity supplied. An inefficiency occurs since at the price ceiling quantity supplied the marginal benefit exceeds the marginal cost. This inefficiency is equal to the deadweight welfare loss.
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economic interdependence economic interdependence Definition A relationship between two or more people, regions, nations or other entities in which each is dependent on the other for necessary goods or services.
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Economic Output: Definition & Overview What is Economic Output? Economic output is the total value of all goods and services produced in an economy. It is a regular tool used in macroeconomic analysis to determine whether an economy is growing or contracting by comparing output during two different points in time.
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Economic problem (December 2015) (Learn how and when to remove this template message) The economic problem – sometimes called the basic or central economic problem – asserts that an economy's finite resources are insufficient to satisfy all human wants and needs. It assumes that human wants are unlimited, but the means to satisfy human wants are scarce. Three questions arise from this:
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Definitions &Translations Economic efficiency. In economics, the term economic efficiency refers to the use of resources so as to maximize the production of goods and services. An economic system is said to be more efficient than another if it can provide more goods and services for society without using more resources. In absolute terms, a situation can be called economically efficient if: ⁕No one can be made better off without making someone else worse off. ⁕No additional output can be obtained without increasing the amount of inputs. ⁕Production proceeds at the lowest possible per-unit cost.
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Market failure In economics, market failure is a situation in which the allocation of goods and services is not efficient. That is, there exists another conceivable outcome where an individual may be made better-off without making someone else worse-off.he existence of a market failure is often the reason that self-regulatory organizations, governments or supra-national institutions intervene in a particular market.
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Monopoly Allocative Inefficiency of a Single-Price Monopoly. 1  The difference between the value of a good and its price is consumer surplus. 2  A single-price monopoly restricts output and charges a higher price, reducing consumer surplus.
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self-sufficiency the extent to which an individual (or household) restricts his consumption to products produced by himself. Developing countries with a large agricultural sector show a higher degree of self-sufficiency than industrial countries where SPECIALIZATION of labour is the norm. See NONMARKETED ECONOMIC ACTIVITY.
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CSRwire Talkback The principle of efficiency is also essential to economic sustainability. Economic efficiency refers to economic value relative to economic cost. The greater the value relative to costs, the greater the efficiency.
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Efficiency Return to top. To economists, efficiency is a relationship between ends and means. When we call a situation inefficient, we are claiming that we could achieve the desired ends with less means, or that the means employed could produce more of the ends desired. “Less” and “more” in this context necessarily refer to less and more value. Thus, economic efficiency is measured not by the relationship between the physical quantities of ends and means, but by the relationship between the value of the ends and the value of the means.
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What is 'Economic Efficiency' A state of economic efficiency is essentially just a theoretical one; a limit that can be approached but never reached. Instead, economists look at the amount of waste (or loss) between pure efficiency and reality to see how efficiently an economy is functioning.hen an economy is economically efficient, any changes made to assist one person would harm another. In terms of production, goods are produced at their lowest possible cost, as are the variable inputs of production.
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Grill Master Chicken Wings Directions. Prep. Cook. Ready In. 1  Combine 1/2 cup soy sauce, Italian dressing, and chicken wings in a large, zip-top bag. 2  Close bag and refrigerate 4 hours to overnight. 3  Preheat an outdoor grill for medium heat. 4  In a small saucepan, melt the butter.5  Stir in the 1 teaspoon soy sauce and the hot pepper sauce. 6  Turn off heat and reserve.irections. Prep. Cook. Ready In. 1  Combine 1/2 cup soy sauce, Italian dressing, and chicken wings in a large, zip-top bag. 2  Close bag and refrigerate 4 hours to overnight. 3  Preheat an outdoor grill for medium heat. 4  In a small saucepan, melt the butter.
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Economy For other uses, see Economy (disambiguation) . An economy (Greek οίκος-household and νέμoμαι - manage) or economic system consists of the production, distribution or trade, and consumption of limited goods and services by different agents in a given geographical location.he GDP-Gross domestic product of a country is a measure of the size of its economy. The most conventional economic analysis of a country relies heavily on economic indicators like the GDP and GDP per capita. While often useful, it should be noted that GDP only includes economic activity for which money is exchanged.
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inefficient market Save to Favorites. A condition in which the Efficient Market Theory does not apply because a security, sector, or market becomes undervalued or overvalued due to the failure of investors to recognize its true value.
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DEFINITION of 'Economic Collapse ' An economic collapse is essentially a severe version of an economic depression, where an economy is in complete distress for months, years or possibly even decades. A total economic collapse is characterized by economic depression, civil unrest and highly increased poverty levels.
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economic efficiency economic efficiency. Definition. The extent to which supplies of goods are matched to demands for goods or services in a particular market. The notion of economic efficiency implies the possibility of an ideal market in which no value is lost due to waste, unneeded surpluses, unmet demand, or other misallocations of resources. Use economic efficiency in a sentence.
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crisis economic crisis - a long-term economic state characterized by unemployment and low prices and low levels of trade and investment. depression, slump. crisis - an unstable situation of extreme danger or difficulty; they went bankrupt during the economic crisis. economic condition - the condition of the economy.
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Inefficiency Allocative inefficiency. Allocative inefficiency occurs when the consumer does not pay an efficient price. An efficient price is one that just covers the costs of production incurred in supplying the good or service. Allocative efficiency occurs when the firm’s price, P, equals the extra (marginal) cost of supply, MC.