Unit 13

Distribution efficiency – efficiency which is achieved when it’s impossible to redistribute the available resources in the way to increase the output of one economic material value without output decrease of other one.

Production capacities curve – curve, points of which have coordinates corresponding to the sets of the two products which can be produced under the complete use of available resources of labor and capital and under a certain level of technological development.

Marginal norm of transformation – minimal quantity of Y which one must refuse for the increase of X on 1 unit.

Partial equilibrium – equilibrium set in a separate market.

General equilibrium – equilibrium which appears in the result of interaction of all markets when the demand change or supplies in a certain market influence equilibrium prices and sales volumes in all markets.

Production efficiency – distribution of the material values under which it is impossible to improve somebody’s welfare without damaging other person

Effect on the feedback – effect which shows the change of the partial equilibrium in the certain market in the result of the changes which appear in the joint markets under the influence of original changes in this market.

Edgeworth’s diagram – model, illustrating the exchange between 2 subjects and showing the efficiency of agreements under exchange.

Quazioptimum – choice of the best from the available combinations of the production output, when Parento – efficient volume of production is impossible.