Deadweight Loss

What does it mean?
The costs to society created by an inefficiency in the market.

In Other Words...
Mainly used in economics, the term "deadweight loss" can be applied to any deficiency due to an inefficient allocation of resources. Lost production due to inaccurate forecasting for labor is an example of a deadweight loss.

Related Links
Economics Basics Tutorial - Learn economics principles such as the relationship of supply and demand, elasticity, utility, and more!

Related Terms
Dismal Science | Economics | Equilibrium | Keynesian Economics | Laissez Faire | Macroeconomics | Microeconomics

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