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Measuring Success of Economic Systems
N/A
5
Economics
Undergraduate 1
10/08/2010

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Term
Consumption Efficiency
Definition
Requires that given the same cost, individuals consume their most preferred goods
Term
Tragedy of the Commons
Definition
Everybody is using the same resources, depleting much faster than if only one person was. It is NOT depleting because of competition.
Term
Involuntary Consumption
Definition
When individuals consume goods which they don't want, and don't consume goods which they do. IE when their neighbors house is hot pink
Term
Efficiency Distribution
Definition
When resources are scarce, not everyone can consume them. Requires that individuals with most need/want/willingness to pay to get the goods
Term
Allocative Efficiency
Definition
simply required that consumption and production efficiency are achieved simultaneously. Marginal Benefit vs Marginal Cost
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