efficiency

Question 1

efficiency

Answer 1

when using resources in a manner that increases the utility/satisfaction of society

Question 2

characteristics of efficiency

Answer 2

1.productivity maximised
2.we are producing g/s society values
3.opportunity cost is minimised
4. satisfaction of society increases

Question 3

Productive/technical efficiency

Answer 3

maximum output when all resources are used fully & efficiently as possible

Question 4

what does technical efficiency implies

Answer 4

1. increased output per unit of input
2. greatest possible production of g/s from resources
3. no wasted resources (idle land/labour resources)
4. production cost decreases –> results in prices decreases

Question 5

Types of productivity

Answer 5

-labour productivity –> per hour
-capital productivity –> per machine hour
- multi-factor productivity –> per hour and machine hour

Question 6

productivity

Answer 6

our level of output per unit (how much output is generating from available resources)

Question 7

allocative efficiency

Answer 7

where we are not only producing at our highest rate of productivity (Technical Efficiency) but we are also producing what society wants/ values.