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    5 3 1

    Uploaded by

    Aahz Mandius
    A study Guide

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    5 3 1

    Uploaded by

    Aahz Mandius
    10 views1 page
    A study Guide

    Original Title

    5-3-1

    Copyright

    © © All Rights Reserved

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    DOCX, PDF, TXT or read online from Scribd

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    A study Guide

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    10 views1 page

    5 3 1

    Uploaded by

    Aahz Mandius
    A study Guide

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    You are on page 1of 1

    5-3 Name: _____________

    Wirte the definitions:


    Allocative efficiency:
    Dynamic efficiency:
    Pareto effiency:
    Productive efficiency:
    I. Efficiency
    a. Efficiency maximises consumer ________ and business _____. Economists highlight three types of efficiency:
    _______, ___________ or technical, and _____________ efficiency.
    b. _________ competitive markets, which have _____ numbers of buyers competing for goods supplied by
    _____ numbers of suppliers, will generally be more efficient. Later in this chapter, less competitive market
    structures including _________ and ________ will be examined.
    II. _____ of __________ ________Productivity
    a. This law of economics, often called the principle of __________ _________, is an important beginning point
    to any understanding of how production might be made more _______. As more and more units of a
    _______ factor of production (e.g. _____) are added to a ______ factor of production (e.g. _____), a point
    will eventually be reached at which the output resulting from each additional unit of the ______ factor will
    start to ______.
    b. One person working on __ hectare of land; produce ___ tonnes of wheat a year. They decide to hire another
    worker.
    c. Two people are able to increase production to ____ a year. The extra worker has caused production to
    increase by ___ tonnes a year. The extra output produced by the one extra unit of the ______ factor, _____,
    is called the _______ product. Increasing by employing more people will allow further ____________ in the
    work and may give even greater returns. A third worker may add marginal production of ____ tonnes,
    increasing output to ___ tonnes. A further may increase production to ____ tonnes, adding ___ tonnes of
    marginal product.
    d. The farmer must decide how many extra ____ to employ. Will they continue getting ______ returns from
    every extra _____ they employ? Clearly the answer is ____. Employing a fifth worker produces a rise in total
    output to ____ tonnes. The _______ product, however, is only ____ tonnes, so we are now at the point of
    diminishing returns. A sixth worker may also increase ____ output, perhaps to ___ tonnes, and a seventh to
    _____ tonnes, but ______ product will continue to decrease until the addition of a further worker may
    actually result in ______ output.
    e. This would be due to a ________ effect, a situation in which the farm has so many workers in relation to the
    land (and any other _____ factors) that they actually get in each other’s way. Any extra workers would
    reduce overall _______ and add little or nothing to total output.

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