What Is Difference Between Resource Allocative Efficiency And Productivity Efficiency?

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What Is Difference Between Resource Allocative Efficiency And Productivity Efficiency?

2 Answers

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Answer 1

Resource allocative efficiency is whereby one is producing a good at the most optimum point using all the resources available efficiently , whilst resource productive efficie ncy is whereby one produces a good without really using all the resources to produce that good, might be making another good with the resources left.

Answer 2

Resource allocative efficiency VS Productivity efficiency

Firstly, productivity efficiency refers to the difference between the actual and optimal quantity of production. For example: If you can write ten blogs in a week but you are writing only 5, then your productivity efficiency is 50%. On the other hand, resource allocative efficiency is the state of producing optimal quantity of a good. Following the previous example, if you are writing 10 blogs in a month then you are in "Resource allocative efficiency". RAE means that you are using your time in the most efficient manner possible in writing a blog.