allocative inefficiency
[/ˌæl.ə.ˈkeɪ.tɪv ɪn.ɪˈfɪʃ.ən.si/]
nounfemininepl: allocative inefficiencies / ineficiências alocativas
ineficiência alocativa
1. An economic condition where resources are distributed in a way that does not maximize overall welfare or economic efficiency; occurs when the marginal benefit of producing a good differs from its marginal cost
The allocative inefficiency in the healthcare system resulted in resources being diverted away from preventive care to less critical treatments.
A ineficiência alocativa no sistema de saúde resultou na desvio de recursos da prevenção para tratamentos menos críticos.
2. A situation where an economy fails to produce the optimal mix of goods and services given available resources and technology
Monopolistic pricing often leads to allocative inefficiency because the quantity produced is below the socially optimal level.
A precificação monopolista frequentemente leva à ineficiência alocativa porque a quantidade produzida fica abaixo do nível socialmente ótimo.
This is a formal economic and academic term used in both Brazilian and American university economics programs, policy discussions, and government reports. In Brazil, it appears frequently in discussions about public spending efficiency and fiscal policy. The concept gained prominence in both countries during economic crises when resource allocation became a central policy concern.
Related Idioms & Phrases
throwing money at a problem without results
resources in the wrong places
misaligned incentives lead to poor outcomes
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