economic inefficiency
Definition
Situation in which, with the given state of technology, it is possible to generate a larger share of welfare-total from the available resources. In other words, the situation where some people can be made better-off by reallocating the resources or goods without making others worse-off. Also called allocative inefficiency, it indicates that a "just the right balance between pain and gain" has not been achieved. See also economic efficiency.
Popular 'Economics, Politics, & Society' Terms
economic inefficiency in the news
Loading...
This content can be found on the following page:
http://www.businessdictionary.com/definition/economic-inefficiency.html
