Question

write short notes on the following

a) economic and technical efficiency

b) purchasing power parity

Answer 1

a)Economic efficiency is indeed an economic state in which every resource is indeed optimally allocated on the whole and with minimizing waste, it serves every individual efficiently and efficiently speaking economic efficiency is when nothing can be done more than being hurt. Technical efficiency refers to the fact that how efficient a business can be when there are only a few inputs.

b)Purchasing power parity or PPP States that the exchange rates between two countries is the ratio of the currencies and PPPis nothing but an applied doctrine of comparative value between currencies of the countries on the whole