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What do you call an economy working at its most efficient production level?
Wiki User
∙ 12y ago
PPF- product possibility frontier.
Wiki User
∙ 12y ago
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If the economy is producing on the production possibilities curve?
At Full Potential
What is minimum efficient level of production in economics?
the level of production at which a good is produced at the lowest possible opportunity cost.
What is the definition of eco-efficiency?
eco is a prefix/contraction of Economy or Ecology. Eco efficiency in economy means the effective and efficient allocation of resources for the production of goods and services to achieve a higher level of income. Eco efficiency in ecology is the balanced interaction of the biotic and a biotic factors in the natural environment.
Major difference between planned economy and mixed economy?
There is no commonality at all between a traditional economic system and a planned economic system other than the basic components of an economic systems (e.g. there are goods and services that are bought and sold).A traditional economy has no centralized or efficient means of production. People produce things locally, using handiwork and personal skill to make products. These products are usually unique and have a low-level distribution. Because of the small amount of products made in a traditional economy, most people lack a significant number of necessities. Traditional economies prevailed in pre-medieval societies, such as Ancient Egypt or Tribal Africa and Papua New Guinea.A planned economy is regulated by a central body that coordinates production across the country. This means of production is industrialized and relatively efficient in production speed. Because production is centralized and controlled by the government, production is incommensurate with market demand. As a result, there are often surpluses and deficits of products and services in a planned economy. Additionally, the national-level coordination of production often leads to regional redistribution and many more links in the distribution chain. Finally, the national coordination typically leads to minimal innovation and distinctiveness between products.
What determines the optimal level of production in command economies?
The optimal level of production in a command economy is determined by the central planners and is consistent with government objectives rather than being a function of consumer desires.
If the economy is producing on the production possibilities curve?
At Full Potential
What is minimum efficient level of production in economics?
the level of production at which a good is produced at the lowest possible opportunity cost.
What is the definition of eco-efficiency?
eco is a prefix/contraction of Economy or Ecology. Eco efficiency in economy means the effective and efficient allocation of resources for the production of goods and services to achieve a higher level of income. Eco efficiency in ecology is the balanced interaction of the biotic and a biotic factors in the natural environment.
Why inflation at very high level and very low level is harmful for economy?
Inflation at a very low level will be harmful for the economy because when the low infaltion will prevail in the economy purcahsing power of the people will get high and they will demand for more goods increase in demand will leads to increase in production in the short run it will be profitable but in the long run it will be harmful for the economy because in the lon run factors of production will be repletion and will lead to lower production and leads to economic crised. in the long run factors of production decides the price of the products not the demand of the products.
Major difference between planned economy and mixed economy?
There is no commonality at all between a traditional economic system and a planned economic system other than the basic components of an economic systems (e.g. there are goods and services that are bought and sold).A traditional economy has no centralized or efficient means of production. People produce things locally, using handiwork and personal skill to make products. These products are usually unique and have a low-level distribution. Because of the small amount of products made in a traditional economy, most people lack a significant number of necessities. Traditional economies prevailed in pre-medieval societies, such as Ancient Egypt or Tribal Africa and Papua New Guinea.A planned economy is regulated by a central body that coordinates production across the country. This means of production is industrialized and relatively efficient in production speed. Because production is centralized and controlled by the government, production is incommensurate with market demand. As a result, there are often surpluses and deficits of products and services in a planned economy. Additionally, the national-level coordination of production often leads to regional redistribution and many more links in the distribution chain. Finally, the national coordination typically leads to minimal innovation and distinctiveness between products.
When output is less than the efficient level?
When output is less than the efficient level, the amount consumers are willing to pay equals the cost of production. the cost of production is greater than the price consumers are willing to pay. the marginal cost of producing the good must be greater than the marginal benefit from the good.
What determines the optimal level of production in command economies?
The optimal level of production in a command economy is determined by the central planners and is consistent with government objectives rather than being a function of consumer desires.
What does it mean when tasks in an economy are specialized?
When tasks in an economy are specialized there are a number of things that happen. This will enhance efficiency and there will be increased production level as each department is monitored individually.
Which nation has a socialist command economy?
There can be no such thing. Socialism is a classless stateless society based on production for use, with no. only or prices, hence no economy. And it will have to be introduced at a global level.
How do you get production points in rising cities?
Production points are based around farms. The higher one has upgraded a farm, the more efficient their production becomes. The production doubles each level, while the production points increase by half. One must then continue to spend production points in order to earn more of them in the long run.
How does Stalin's 5 year plan resemble a command economy?
Stalin's Five Year Plan did not "resemble" a command economy; it WAS a command economy. A command economy is when the central government determines how much production will occur (instead of allowing businesses to produce at their own levels). The Five Year Plan was an explicit set of quotas by Stalin as to how much production (mostly agricultural) would occur in the next five years, setting a level of production which was unreasonable.
How is a clothes store a domestic level of production?
it is produced in the the home country where both human and natural resources are employed. The economy is dependent on what it can produce from these resources
