A trade-off between equity and efficiency arises when there is some conflict between maximizing net economic efficiency and achieving other social goals.
Most economic theories use a utilitarian approach as an ethical basis, but this can conflict with other moral values that people hold, leading to a trade-off between fairness and efficiency.
Inequality and redistribution of income is a typical example of a trade-off between equity and efficiency.
“Best Effort” is a legal term that represents the obligation of a party to a contract to take all possible steps to fulfill the terms of the agreement.
Disequilibrium is when external forces cause an imbalance between supply and demand in the market. In response, the market enters a state in which supply and demand do not match.
Economic equilibrium is a state in which market forces are balanced, a concept borrowed from the physical sciences, where observable physical forces can balance each other.
An economist is an expert who studies the relationship between a society’s resources and its production or output, using a number of different indicators to predict future trends.
External economies of scale - these are factors that contribute to the development of business, which are manifested outside the company, but within the same industry.