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Information about Economic Efficiency

Economic efficiency is a general term for the value assigned to a situation by some measure designed to reduce the amount of waste or "friction" or other undesirable economic features present. Economic efficiency is achieved when the cost of producing a given output is as low as possible. Production of a unit of good or services is termed economically efficient when that unit of good or service is produced at the lowest possible cost. In current usage, the term microeconomic reform refers to any policy that promises to increase economic efficiency (whether it does so or not).

In order to achieve Economic efficiency the following need to occur: 1) Any product X is produced at the lowest cost. 2) The economy uses all the raw materials that in hand. Example: X,Y are produced by a,b. In efficient productivity, we use both a,b in a way that we cannot produce anymore X or Y with the a,b that had left.

There are several measures of economic efficiency,

including: For applications of these principles see:

Documentary films

See also

The term microeconomic reform refers to policies directed to achieve improvements in economic efficiency, either by removing distortions in individual sectors of the economy or by reforming economy-wide policies such as tax policy and competition policy with an emphasis on economic
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Pareto efficiency, or Pareto optimality, is an important notion in economics with broad applications in game theory, engineering and the social sciences. The term is named after Vilfredo Pareto, an Italian economist who used the concept in his studies of economic efficiency
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Kaldor-Hicks efficiency (named for Nicholas Kaldor and John Hicks) is a type of economic efficiency that captures some of the intuitive appeal of Pareto efficiency, while having less stringent criteria and therefore being applicable in more circumstances.
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In economics, x-efficiency is the effectiveness with which a given set of inputs are used to produce outputs. If a firm is producing the maximum output it can, given the resources it employs, such as men and machinery, and the best technology available, it is said to be x-efficient.
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Allocative efficiency is the market condition whereby resources are allocated in a way that maximizes the net benefit attained through their use. Allocative efficiency refers to a situation in which the limited resources of a country are allocated in accordance with the wishes of
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In welfare economics, distributive efficiency occurs when goods and services are received by those who have the greatest need for them. Abba Lerner first proposed the idea of distributive efficiency in his 1944 book The Economics of Control.
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Productive efficiency Equivalently, it is the highest possible output of one good, given the production level of the other good(s). In long-run equilibrium for a perfectly competitive markets, this is where average cost is at the lowest point on the Average Cost curve.
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In economics a social welfare function can be defined as a real-valued function that ranks conceivable social states (alternative complete descriptions of the society) from lowest on up as to welfare of the society.
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In finance, the efficient market hypothesis (EMH) asserts that financial markets are "informationally efficient", or that prices on traded assets, e.g., stocks, bonds, or property, already reflect all known information and therefore are unbiased in the sense that they reflect the
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Welfare economics is a branch of economics that uses microeconomic techniques to simultaneously determine allocative efficiency within an economy and the income distribution associated with it.
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In microeconomics, Production is simply the conversion of inputs into outputs. It is an economic process that uses resources to create a commodity that is suitable for exchange. This can include manufacturing, storing, shipping, and packaging.
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The term microeconomic reform refers to policies directed to achieve improvements in economic efficiency, either by removing distortions in individual sectors of the economy or by reforming economy-wide policies such as tax policy and competition policy with an emphasis on economic
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Documentary film is a broad category of visual expression that is based on the attempt, in one fashion or another, to "document" reality. Although "documentary film" originally referred to movies shot on film stock, it has subsequently expanded to include video and digital
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Jeremy Bentham (IPA: ['benθəm]) (26 February [O.S. 15 February 15] 1748) – June 6, 1832) was an English jurist, philosopher, and legal and social reformer.
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Charles Babbage FRS (26 December 1791 – 18 October 1871) was an English mathematician, philosopher, and mechanical engineer who originated the idea of a programmable computer. Parts of his uncompleted mechanisms are on display in the London Science Museum.
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Francis Galton

Francis Galton
Born January 16 1822(1822--)
Birmingham, England
Died January 17 1911 (aged 90)
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Distribution in economics refers to the way total output or income is distributed among individuals or among the factors of production (labor, land, and capital) (Samuelson and Nordhaus, 2001, p. 762).
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The efficiency ratio, a ratio that is typically applied to banks, in simple terms is defined as expenses as a percentage of revenue (expenses / revenue), with a few variations. A lower percentage is better since that means expenses are low and earnings are big.
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The compensation principle in welfare economics refers to a decision rule used to select between pairs of alternative feasible social states. One of these states is the the hypothetical point of departure ("the original state").
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The term inefficiency has several meanings depending on the context in which its used:
  • Allocative inefficiency - Allocative efficiency theory says that the distribution of resources between alternatives does not fit with consumer taste (perceptions of costs and

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