Examlex
When a target bonus is set for each eligible position and adjustments are then made for greater- or less-than-targeted performance, this is called
Externalities
Indirect effects of production or consumption activities on third parties, which can be either positive or negative and are not reflected in market prices.
Ideal Economic Efficiency
A state where resources are allocated in the most efficient way possible, maximizing total net benefit to society or economy.
Government Failure
Situations where government interventions in the economy lead to inefficient outcomes, worsening the problem they intended to solve.
Efficient Allocation
The optimal distribution of resources among competing uses, aiming to maximize the overall benefit or utility from those resources.
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