Economic Efficiency

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Economic Efficiency

 

the ratio between the results of production—output and material services—on the one hand and expenditures of labor and the means of production on the other. Under socialism, economic efficiency is a key index of economic development. For the capitalist entrepreneur, expenditures take the form of fixed capital stock and circulating productive capital advanced by him, and results take the form of profits. Comparisons of expenditures and results based on report and statistical data for the various branches of the economy and for the national economy as a whole are used in the management of capitalist firms, whose primary motive is the desire to maximize profits.

References in periodicals archive ?
This state of economic inefficiency is a burden on the industry.
Ethnic unrest and economic inefficiency were other major challenges Gorbachev faced.
This additional shipping time and cost constitute an economic inefficiency that would follow from the elimination of competition between Hillshire and Tyson.
Forced diversification, for example by subsidizing new industries, if it is not consistent with the country s endowments, will almost always fail as it usually results in economic inefficiency.
This "separation of ownership and control" as it came to be known gave rise to serious economic inefficiency.
Remaking Scarcity: From Capitalist Economic Inefficiency to Economic Democracy
According to Barroso, the real culprit for the crisis is not the EU, but rather what he termed "a Bermuda triangle of private imprudence, public indulgence and economic inefficiency.
BAN is the world's only organization focused on confronting the global environmental justice and economic inefficiency of toxic trade and its devastating impacts.
Ambassador Andrew Tesoriere, the Head of the OSCE Centre in Bishkek, said: "The distribution, use and management of water resources in Kyrgyzstan is characterized by certain economic inefficiency and linked with communal disputes.
The current government has reversed the liberalizing reforms that the prior regime had instituted- potentially to replace them with trade restrictions, price controls and maintaining subsidies- [Such policies are] a recipe for economic inefficiency and stagnation.
This cost is now the largest source of economic inefficiency in drug development.
Summary: Iran's plan to cut costly fuel and food subsidies brings to a head a debate over economic inefficiency that has raged for years but has become urgent because of the threat of more UN sanctions, analysts say.