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 

HideShow resource information
  • Created by: Jade
  • Created on: 01-12-12 11:37

1. Which one of these should increase allocative efficiency?

  • Increased competition
  • Increased market share for a firm
  • Increased hit and run competition
1 of 14

Other questions in this quiz

2. What is dynamic efficiency?

  • Dynamic efficiency is improvements in products, processes and productivity over time by exploiting economies of scale or successful investment in research and development. In short, efficiency over time.
  • Dynamic efficiency is the creative work undertaken to apply scientific and technological innovations to products and processes.

3. What is X inefficiency?

  • X inefficiency occurs when there is little incentive for firms to want to be efficient.
  • X inefficiency occurs when a firm uses more inputs than are necessary for a given level of output. Associated with lack of competition e.g. within a monopoly
  • X inefficiency occurs when a market fails to deliver the amount of products and services most wanted by consumers

4. Improving products helps a firm gain or at least retain ______ in the face of competition

  • Market share
  • Profit
  • Revenue

5. What is allocative efficiency?

  • Allocative efficiency is where firms are achieving economic efficiency
  • Allocative efficiency is when scarce resources are used in a way that maximises consumer satisfaction.
  • Allocative efficiency is where firms are maximising output from given inputs.

Comments

davidsalter

Report

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

Similar Economics resources:

See all Economics resources »See all Production and efficiency resources »