Efficiency Presentation

AN ECONOMICS PRESENTATION

Efficiency

By Temi Onabajo

06/10/18

Index

Dynamic Efficiency

Productive Efficiency

Allocative Efficiency

Ending

Productive Efficiency

01

What is Productive Efficiency

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In microeconomic theory, productive efficiency is a situation in which the economy or an economic system operating within the constraints of current industrial technology cannot increase production of one good without sacrificing production of another good An example of this can be when firms replace human labor with automation, manufacturers are able to increase output while reducing costs

Allocative Efficiency

02

What is Allcoative Efficiency?

Allocative efficiency is a state of the economy in which production is aligned with the preferences of consumers and producers; in particular, the set of outputs is chosen so as to maximize the social welfare of society

Examples

• A society with a younger population has a preference for production of education, over production of health care

Dynamic Efficiency

03

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LOREM IPSUM DOLOR

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What is Dynamic Efficiency?

In economics, dynamic efficiency is achieved when an economy invests less than the return to capital; conversely, dynamic inefficiency exists when an economy invests more than the return to capital. In dynamic efficiency, it is impossible to make one generation better off without making any other generation worse off.

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