Economic inefficiency - How To Discuss

Economic inefficiency,

Definition of Economic inefficiency:

1. 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.