Efficiency
- 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
- Allocative
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