• Created by: lizaloo98
  • Created on: 11-04-16 09:10
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  • Efficiency
    • Allocative
      • where consumer satisfaction is maximised
      • happens where quantity supplied meets quantity demanded
      • so it is achieved when the market is in equilibrium
        • D=S
      • doesn't always happen in practice
      • not always achieved in competitive markets, as supply and demand is always changing
      • also may not happen in command economy as governments may fail when intervening
    • Productive
      • where production takes place using the least amount of scarce resources
      • where firms are working on the PPF curve
    • Dynamic
      • where it is impossible to make one generation better off without making any other generation worse off


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