Efficiency Of Perfect Competition Flashcards
1
Q
Efficiency
A
The condition in which the economy is producing what people want at least possible costs
2
Q
Pareto efficiency
A
A condition in which any change will help some and hurt others.
3
Q
Market failure
A
When resources are allocated inefficiently, resulting in waste or lost value.
4
Q
Public or social goods
A
Goods or services that provide collective benefits to society. Generally no one is excluded from the benefits.
5
Q
Private goods
A
Goods sold from firms to households.
6
Q
Externality
A
A cost or benefit imposed or bestowed on an individual or group that is outside the transaction.
