Efficiency - A2 Economics OCR

All the types of efficiency that are relevant to the A2 Transport exam. 

P - price 

MC - marginal cost 

MR - marginal revenue 

AC - average cost 

AR - average revenue 

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  • Created by: Jade
  • Created on: 01-12-12 11:37

1. What is economic efficiency?

  • Economic efficiency occurs in a market when both allocative and productive efficiency are achieved.
  • Economic efficiency occurs when a firm uses the right amount of inputs that are necessary for a given level of output.
  • Economic efficiency occurs when scarce resources are used in a way that maximises consumer satisfaction.
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Other questions in this quiz

2. What is true of allocative efficiency?

  • The price paid by the consumer represents the price the supplier is willing to sell for
  • The price paid by the consumer represents the true cost of producing the last unit
  • The price paid by the consumer represents the lowest cost of producing the last unit

3. Where does productive efficiency occur?

  • AC=MC
  • P=MC
  • AR=MC

4. Which of these is NOT an example of X inefficiency?

  • Technical economies of scale
  • Employ surplus labour
  • Adopt inefficient managerial practices

5. What is productive efficiency?

  • Productive efficiency is where firms are maximising output from given inputs.
  • Productive efficiency is when scarce resources are used in a way that maximises consumer satisfaction.
  • Productive efficiency is where firms are operating at the lowest point on the MR curve

Comments

davidsalter

A set of 10 questions on efficiency. Take a break from reading by testing yourself. Could show areas for further study.

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