Productive effective: goods or service
produced at lowest posible
Allocative effective: every goods
and serive is produced up the the point where magirnal benefit
equal to the magirnal cost
Effiency means that goods are
distributes in a wat that maximazies benefit to
society
Equity means goods distribute in the way
that is fair
Scracity the stituation in which
the unlimited wants exceed the unlimited resouces
available to fullfill those wants
Market economic An economic in which the
decisions of household and firms interacting in
the market allocate economic resources
centrally planed economy An economy in
which goverment decised how is the economy resource will be
allocated