Multiple Choice
In the context of allocative and productive efficiency, why is anything not essential to the product or process considered waste in a lean environment?
30
views
0. Basic Principles of Economics
Allocative Efficiency, Productive Efficiency, and Equality
Struggling with Microeconomics?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which of the following is NOT considered a factor in determining economic efficiency?
A
Productive efficiency
B
Allocative efficiency
C
Minimization of waste
D
Equality
Verified step by step guidance1
Step 1: Understand the concept of economic efficiency, which generally refers to how well resources are used to maximize output and satisfy preferences without waste.
Step 2: Recognize that productive efficiency means producing goods at the lowest possible cost, using resources optimally.
Step 3: Know that allocative efficiency occurs when resources are distributed in a way that maximizes consumer satisfaction, meaning the right mix of goods is produced according to preferences.
Step 4: Identify that minimization of waste is related to economic efficiency because it ensures resources are not squandered and are used effectively.
Step 5: Understand that equality, while important in economics, refers to the fairness of distribution rather than efficiency, and thus is NOT considered a factor in determining economic efficiency.
4:04mWatch next
Master Efficiency and Productive Efficiency with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
Allocative Efficiency, Productive Efficiency, and Equality practice set
Problem sets built by lead tutorsExpert video explanations