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Economics

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Guessanym
Economics

Economics

Depth
2
Use as Polynym Mark as Seen ✓
Keyword:   both
Context:   A point inside the curve (as at A), is feasible but represents production inefficiency (wasteful use of inputs), in that output of one or both goods could increase by moving in a northeast direction to a point on the curve.
Full context:   By construction, each point on the curve shows productive efficiency in maximizing output for given total inputs. A point inside the curve (as at A), is feasible but represents production inefficiency (wasteful use of inputs), in that output of one or both goods could increase by moving in a northeast direction to a point on the curve. Examples cited of such inefficiency include high unemployment during a business-cycle recession or economic organisation of a country that discourages full use of resources. Being on the curve might still not fully satisfy allocative efficiency (also called Pareto efficiency) if it does not produce a mix of goods that consumers prefer over other points.

Social Science

Source
Genevieve Carlton, Ph.D.
Area
Scientific Research
Mode
type
Depth
6
User
dane
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