Examlex

Solved

Explain What Is Meant by Economic Efficiency

question 256

Essay

Explain what is meant by economic efficiency. Does efficiency imply that the fastest production processes or the most powerful equipment must always be used? Explain.


Definitions:

Social Choice

A theoretical framework for analysis of combining individual preferences, interests, or welfare to reach a collective decision or social welfare in a given society.

Aggregating

The process of combining multiple pieces of data or information into a single comprehensive whole.

Incentives

Refers to stimuli that motivate individuals or entities to perform certain actions or behaviors.

Majority Rule Voting

A voting system in which each member has one vote, and decisions are made by a majority of the votes cast, typically more than half.

Related Questions