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.
1 of 14
Other questions in this quiz
2. What is research and development?
- Research and development is the creative work undertaken to apply scientific and technological innovations to products and processes.
- Research and development 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.
3. What is X inefficiency?
- 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
- X inefficiency occurs when there is little incentive for firms to want to be efficient.
4. Which one of these should increase allocative efficiency?
- Increased hit and run competition
- Increased competition
- Increased market share for a firm
5. What is productive efficiency?
- Productive efficiency is where firms are operating at the lowest point on the MR curve
- 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.
Similar Economics resources: