Q.1 Discuss how can exist production be more efficiently used? Productive Efficiency
Productive efficiency can be defined as, or achieved by, producing at a minimum cost. By producing at a minimum cost, FEWER RESOURCES are used and MORE can be produced. This reduces scarcity and gives us more satisfaction from our existing resources. We can produce at a minimum cost and achieve productive efficiency by: a. Not using more resources than necessary
b. Using resources where they are best suited
c. Using appropriate technology
A PPF typically takes the form of the curve on the right. An economy that is operating on the PPF is said to be efficient, meaning that it would be impossible to produce more of one good without decreasing production of the other good. In contrast, if the economy is operating below the curve, it is said to be operating inefficiently because it could reallocate resources in order to produce more of both goods. For example, assuming that the economy's available quantity of factors of production does not change over time and that technological progress does not occur, then if the economy is operating on the PPF production of guns would need to be sacrificed in order to produce more butter. If production is efficient, the economy can choose between combinations (i.e., points) on the PPF: B if guns are of interest, C if more butter is needed, D if an equal mix of butter and guns is required. In the PPF, all points on the curve are points of maximum productive efficiency (i.e., no more output of any good can be achieved from the given inputs without sacrificing output of some good); all points inside the frontier (such as A) can be produced but are productively inefficient; all points outside the curve (such as X) cannot be produced with the given, existing resources. Not all points on the curve are Pareto efficient, however; only in the case where the marginal rate of transformation is equal to all consumers' marginal rate of substitution and hence equal to the ratio of prices will it be impossible to find any trade that will make no consumer worse off. Any point that lies either on the production possibilities curve or to the left of it is said to be an attainable point, meaning that it can be produced with currently available resources. Points that lie to the right of the production possibilities curve are said to be unattainable because they cannot be produced using currently available resources. Points that lie within the curve are said to be inefficient, because existing resources would allow for production of more of at least one good without sacrificing the production of any other good. An efficient point is one that lies on the production possibilities curve. At any such point, more of one good can be produced only by producing less of the other. Such a two-good world is a theoretical simplification, due to the difficulty of graphical analysis of multiple goods. If we are interested in one good, a composite score of the other goods can be generated using different techniques. Furthermore, the production model can be generalized using higher-dimensional techniques such as Principal Component Analysis (PCA) and others.
Q.2 Explain how we can increase the production without increasing impacts on the global environment? GECAFS is developing a portfolio of conceptual and methodological research closely linked to a set of regional projects. The conceptual and methodological research employs international research networks. They bring together and synthesize relevant, high-quality research from around the world to improve understanding on four key topics: Food systems research: to improve understanding of food systems suitable for GEC research. Vulnerability research: to integrate social science and natural science concepts of what makes a food system vulnerable. Scenario research: to determine how to construct the comprehensive scenarios needed for GECAFS regional research....
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