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economic inefficiency

Found inside – Page 36However, the relative contribution to overall economic inefficiency made by unequal distribution of resources is not so remarkable in comparison with the ... Download. Essay from the year 2016 in the subject Business economics - Business Management, Corporate Governance, grade: 1,7, , course: Economics of Accounting and Finance, language: English, abstract: The following paper will analyze the positive as ... Log In with Facebook Log In with Google. We suggest how economic sociology, paired with environmental sociology, has much to contribute to the ame- lioration of energy overuse. "An allocation of resources in the economy is economically efficient (now called Pareto efficient) if it is impossible to reallocate the resources so as to make at least one person feel better off … Sign Up with Apple. Published in volume 106, issue 5, pages 383-87 of American Economic Review, May 2016, Abstract: Healthcare and education exhibit wide variation in spending that is loosely associated with outcomes. The Inherent Inefficiency of Government Bureaucracy. A 500-bed hospital loses over $4 million annually as a result of communication inefficiencies. Of 14 private industries tracked by the Bureau of Economic Analysis (BEA), four declined. Save this story for later. Smallholder farmers' efficiency has been measured by different scholars using different approaches. Use of the concept of economic "efficiency" to guide public policy and even the courts has become almost commonplace. Functional Inefficiencyaoffers a wealth of details and a unique analysis of our economic system, plus hope for our future prospects through reduced inefficiency. In all the cases we have considered, the magnitudes cho-sen appear to be on the large side and the outcome is on the small side. Diana Olick Wed, Aug 18th 2021. The authors conclude that it is impossible, using traditional microeconomic models, to demonstrate empirically that an outcome is inefficient; they suggest an appropriate role for economics in legal analysis. Disagreement now lies in how The Journal of Economic Education offers original articles on teaching economics. If a situation is economically inefficient, it becomes possible to benefit at least one party without … It has several meanings depending on the context in which it is used: Allocative inefficiency - Allocative efficiency refers to a situation in which the distribution of resources between... Distributive Inefficiency - refers to the inefficient distribution of income and wealth within a society. This book explains the underlying reasons for this gloomy outlook and lays out a clear plan for making the American economy work for everyone, not just the top 1 percent. Found insideThis book develops econometric techniques for the estimation of production, cost and profit frontiers, and for the estimation of the technical and economic efficiency with which producers approach these frontiers. The allocation of consumption needs to be efficient across commodities at each point in time and between consumption and saving. A powerful challenge to the neoliberal orthodoxy Socialism addresses the contemporary issues of economic inequality and argues that wealth can exist for long periods only to the extent that wealthy producers succeed in satisfying the consumers. This book examines the implications of The General Theory of Second Best for analyzing the economic efficiency of non-government conduct or government policies in an economically efficient way. The allocation of consumption needs to be efficient across commodities at each point in time and between consumption and saving. Economics is a science of efficiency in the use of scarce resources. = X-inefficiency Output Figure 3 – X-efficiency gap The x-inefficiency gap, as shown in figure 3, is considered as unnecessary production costs that a firm can reduce. China, however, poured more concrete for roads and other construction between 2011 and 2013 than America did in the 20th century. Downtown’s Post-9/11 Rebuild Opened My Eyes to Government Inefficiency. Check out using a credit card or bank account with. Economics Letters 81 (2), 223 – 226. This study resource provides an updated collection of short revision videos on the topic of economic efficiency. Pareto inefficiency. Economic efficiency is the standard that economists use to evaluate a wide range of things. Bruno Baranek, ... Fabra, N and M Reguant (2014), “Pass-Through of Emissions Costs in Electricity Markets," American Economic Review 104: 2872-2899. Many Americans feel that the economy is no longer working for them and that "the American Dream" has become a sham. It focuses on the bounds of rationality of economic agents. Remaking Scarcity is a powerful challenge to the current economic orthodoxy. when all goods and factors of production in an economy are distributed or allocated to their most valuable uses and waste is eliminated or minimized. The Inefficiency of Local Food. The Journal of Economic Education is published quarterly in cooperation with the National Council on Economic Education and the Advisory Committee on Economic Education of the American Economic Association. In this book the authors explore the state of the art on efficiency measurement in health systems and international experts offer insights into the pitfalls and potential associated with various measurement techniques. Sitharaman's millennials remark reflects inefficiency, immaturity of BJP in governance: Congress 11 Sep, 2019, 09.49 PM IST. Where costs are de-creasing, the costs of additional units of output (marginal costs) are less than average unit costs. 1 Introduction A vast literature, pioneered by Fama and French (1988), examines the so-called fipredictabil- Urban PolicyNYC. Allan Brownfield. The other is financial: From 1995 onward, the U.S. Federal Reserve pumped excessive amounts of money into the global economy, eliminating the capital cost advantage that had previously protected U.S. manufacturers from competitors in cheap-labor economies. Adam Smith's notion of a liberal economy still considered unmanaged capitalism as a state to avoid if there was to be equity in the marketplace and if "all boats were to rise." All of these categories of economic inefficiency are "relative total allocative cost" (RTLC) resource misallocations--i.e., all result because resources are allocated in economically-inefficient proportions among uses in a single category in different ARDEPPSes or between two categories of use. Request Permissions. The results suggest that raising public sector efficiency could yield large economic benefits: if the efficiency in all Inefficiency of carbon pricing with government-owned companies . THE INEFFICIENCY OF SPLITTING THE BILL* Uri Gneezy, Ernan Haruvy and Hadas Yafe When agents are ascribed selfish motives, economic theory points to grave inefficiencies resulting from externalities. Found inside – Page iThis symposium brought together leading experts and managers from the public and private sectors who are involved in the creation, dissemination, and use of scientific and technical data and information (STI) to: (1) describe and discuss ... In its pages, leading scholars evaluate innovations in teaching techniques, materials, and programs. Economics (/ ˌ iː k ə ˈ n ɒ m ɪ k s, ˌ ɛ k ə-/) is the social science that studies how people interact with value; in particular, the production, distribution, and consumption of goods and services.. Economics focuses on the behaviour and interactions of economic agents and how economies work. This book analyzes public debt from a political, historical, and global perspective. Leibenstein (1966) has argued that the social costs of "X- inefficiency" may substantially outweigh those arising from misallocation of resources, and Bergsman (1974) has attempted to quantify the costs of protection arising from tariff induced reductions in X-efficiency. This book unifies and extends the definition and measurement of economic efficiency and its use as a real-life benchmarking technique for actual organizations. Full employment means all available resources should be employed. dependence of industries on the government, we find that public sector inefficiency significantly reduces the labor productivity of private sector firms. ‘The additional loss of Air India is on account of inefficiency’ 26 Aug, 2009, 01.41 AM IST. Under socialism, economic efficiency is a key index of economic development. By Wayne Winegarden, PhD*, March 4, 2013 Despite 50 years of failure, faith that the federal government can cure what ails the health care industry endures. The Rise of Tech Giants May Be Bad News for the Economy. 2. Measuring the economic inefficiency of Nepalese rice farms using data envelopment analysis. The Inefficiency of Targeted Tax Policies Joint Economic Committee Republicans April 1997 A number of proposals for tax relief have been introduced by members of Congress from across the political spectrum. The Inefficiency of the Market Isn’t an Open Question. ECONOMIC EFFICIENCY. In a dynamically inefficient economy there is excessive saving which leads to excessive capital accumulation. A simple economic model provides an empirical framework to separate these explanations. In economic terms, an inefficient market is a market in which securities prices are random and not influenced by past events. Analysts should also consider the potential distortionary effects of market-based instruments. This report assesses the Soviet effort to improve economic performance by improving the quality of machine-building products. The Value Of Japanese Inefficiency. In federal systems, inter-jurisdictional inefficiencies arise when the decisions The Goals of the Policymaker These challenges are enhanced by confrontation with the West and efforts to maintain the stability of the regime, which spur Russia’s leaders to rely on economic protectionism and self-isolation. Over the past several years there has been an awareness that mar kets, contractual arrangements, and hierarchical organizations can be uti lized as alternative modes of coordinating resource utilization in the con text of the firm. Construction employment increases in 269 metro areas, EFFICIENCY ANALYSIS OF OPEN FIELD TOMATO PRODUCTION IN PUNJAB: A NON PARAMETRIC DATA ENVELOPMENT ANALYSIS APPROACH, Success and Luck: Good Fortune and the Myth of Meritocracy, The little tax that could: how Hillary can rein in Big Finance--and win over Bernie's supporters in the process, Cost pressure to push Pb-free electronics in military, aerospace, Economic Competition Between the Two World Systems, Economic Cooperation Between the USSR and Nonsocialist Countries, Economic Cooperation of the Socialist Countries, Economic Efficiency of Capital Investments, Economic Efficiency of Socialist Production, Economic Incentives for Enterprises in Indiana and Ohio, Economic Information Systems, Incorporated, Economic Input-Output Life Cycle Assessment, Economic Intelligence and Investigation Bureau. In a perfectly competitive market, a firm must eliminate any form of x-inefficiency in order to survive and make normal profits. Among the many things which impress the visitor to Japan are the very low crime rate and the virtual absence of anti-social behaviour in public spaces. “Less” and “more” in this context necessarily refer to less and more value. Nevertheless, the industry suffers from economic inefficiency, lack of human capital and advanced technologies, and governmental over-regulation. The Recycling Myth. Wednesday, June 1, 1977. Behavioral economics analyzes behavioral finance, financial models, and the behavioral game theory in order to gain insight into why certain economic decisions are made. an economy. Inefficiency definition: the quality or condition of being inefficient ; lack of efficiency | Meaning, pronunciation, translations and examples Will the welfare state survive in the future?Stein Ringen views the welfare state as a large-scale experiment in political reform. To ask if the welfare state works is to ask if political reform is possible at all. Brett Arends is an award-winning financial writer with many years experience writing about markets, economics and personal finance. Some of the fundamental tenets of conventional economic wisdom, which have had a profound impact on public policy, are challenged in this book. The mode is the number that occurs most often in a group of numbers. Comparisons of expenditures and results based on report and statistical data for the various branches of the economy and for the national economy as a whole are used in the management of capitalist firms, whose primary motive is the desire to maximize profits. Related Papers. Economists who favor markets argue that they generate outcomes more efficient than do socialism or government regulation. Homebuilder sentiment falls to lowest level in over a year as buyers face sticker shock. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional. market inefficiency meaning: a situation in which a financial market does not operate as well as it should, for example where…. As a Swede I get to hear a lot of the myths of how wonderful a country Sweden supposedly is — the " prosperous socialism " it stands for, a role model for the rest of the world. The market for vaccinations is widely believed to be characterized by market failures, because individuals do not internalize the positive externalities that their vaccination decisions may confer on other individuals. Economics offers limited resources to understand how to make decisions in the presence of fundamental uncertainty. We study a restaurant setting in which groups of diners are faced with different ways of paying the bill. Inefficiency Measurement by Christopher P. Chambers and Alan D. Miller. The nature, form, and methods of economic incentive depend on the dominant production relations of a society. Pareto inefficiency is associated with economist Vilfredo Pareto, and occurs when an economy is not operating on the edge of its PPF and is, therefore, not fully exploiting its scarce resources. While the agriculture, forestry, fishing, and hunting sectors enjoyed a 12.0% growth within this period, the mining industry actually declined 20.3%. Vol. I (1) operationalizes the specific-anticompetitive-intent and lessening-competition tests of illegality both U.S. and E.U. antitrust law promulgate and the distorting-competition and exploitative-abuse-of-a-dominant-position tests E.U. ... Two members of Congress earlier this month introduced legislation advancing a food reform movement promising to help resolve the great environmental and nutritional problems of the early 21 st century. Efficiency is about a society making optimal (best) use of scarce resources to help satisfy our changing wants & needs. Instruments that include a revenue-raising component, such as auctioned permits or taxes, may allow for opportunities to direct collected resources to the reduction of market inefficiencies. In October 2001, I stood with my colleague peering out the windows of our office building, 195 Broadway, into Ground Zero below. Some of the negative effects of the sprawl include increased transportation costs, congestion, air pollution, No society of any size has been able to sustain itself when the living conditions of the majority of citizens are so depraved in comparison to those of the "landed." 10? © 1989 Taylor & Francis, Ltd. The median is the middle value in a group of numbers ranked in order of size. This economic inefficiency has a direct impact (both positively and negatively) on the life chances of all Americans. When the economy struggles, Treasury yields tend to fall, and vice versa. The results of the Ponemon Institute survey found that the primary reasons for communication challenges were the inefficiency of pagers, the inability to use text messaging and lack of Wi-Fi availability. X-Inefficiency in the Use of Income to attain Economic Satisfaction . This book explains the underlying reasons for this gloomy outlook and lays out a clear plan for making the American economy work for everyone, not just the top 1 percent.The heart of the problem, says economist Steve Slavin, is gross inefficiency. the ratio between the results of production—output and material services—on the one hand and expenditures of labor and the means of production on the other. Access supplemental materials and multimedia. Inefficiency of Healthcare Looming as Crucial Problem. or reset password. Logic provides the tool for extracting the information … economic efficiency an aspect of PRODUCTION that seeks to identify, for a given level of OUTPUT, the combination of FACTOR INPUTS that minimizes the COST of producing that output. ... generating marked inefficiency as a result. Tue, Aug 17th 2021. By John Cassid y. October 15, 2013. (e) Economic efficiency distinguished from technical efficiency. But why and under which conditions do some societies choose inefficient institutions? This is the main question the thesis seeks to answer. ii. Mises analyzes reform measures, such … On February 19, the yield on the 10-year Treasury was 1.56%. Technical efficiency: the provision of an item at the minimum possible cost; does not imply scarce resources are being well used. Potential Economy-Wide Distortions. "The purpose in this investigation is to clarify and discuss what is believed to be one of the major deterrents to an efficient utilization of water in Texas. a system of measures that uses material means to motivate participants in production to work for the creation of the social product. This means that the economy is producing less than the maximum … Within this work, the curious reader will find interesting open questions on many fascinating areas of current economic debate, including, the role of realistic assumptions robust model building, understanding how and when non-neoclassical ... 10.1016/S0165-1765(03)00173-3 … Published in volume 6, issue 2, pages 79-92 of American Economic Journal: Microeconomics, May 2014, Abstract: We introduce an ordinal model of efficiency measurement. https://encyclopedia2.thefreedictionary.com/Economic+inefficiency. Congress spokesperson Abhishek Singhvi said Sitharaman's statement is a grave joke on the poor state of the economy. Efficiency is a favourite objective of economists and administrators, but not everyone agrees on its meaning. Economic Theory: Allocative Efficiency Allocative Efficiency, also sometimes called social efficiency, means that scarce resources are used in a way that meets the needs of people in a Pareto-optimal way, and is not to be confused with the concept that resources are … Covid-19 and the Inefficiency of State Coercion. i. Enter the email address you signed up with and we'll email you a reset link. When we call a situation inefficient, we are claiming that we could achieve the desired ends with less means, or that the means employed could produce more of the ends desired. Similarly, China’s growing economy and recent financial gains stem in part from energy efficiency improvements in its industrial sector. Across the cement, steel, and aluminum industries, energy intensity improved at rates as high as 21 percent between 2010 and 2014. Dynamic efficiency is characterized by the golden rule. Economic Efficiency. Inequality hurts economic growth, finds OECD research. The dominance of a few firms risks harming productivity and growth, study finds By . INEFFICIENCIES IN THE ONTARIO HEALTHCARE SYSTEM GROUP 6 HOANG ANH LUU - n01251094 SUNESHKA JAYASEKERA - This book provides a theoretical framework to better understand how firms, economies and labor markets have evolved. This is done in a reader-friendly fashion, without complex mathematical arguments and proofs. By New Matilda on August 24, 2009 International Affairs. Economy. or. New York Post September 13, 2021. Francis (1997) provided a set of assumptions under which the equilibrium vaccinat … Economic and social collapses in Detroit, Cleveland and many other US cities did not happen because production was inefficient there. Economic Inefficiencies of Cost-based Electricity Market Designs Francisco D. Munoz,* Sonja Wogrin,** Shmuel S. Oren,*** and Benjamin F. Hobbs**** ABSTRACT Some restructured power systems rely on audited cost information instead of com - petitive bids for … In a dynamically inefficient economy there is excessive saving which leads to excessive capital accumulation. Select the purchase WHAT WERE YOU ALL THINKING ABOUT PROP. Behavioral economics studies the consequences for market prices, returns, and resource allocation. Learn more. Economic efficiency extends beyond technical efficiency. The second is whether government policy is at least improving market performance: Is it reducing the economic inefficiency, or “deadweight” loss, from market failure? Of x-inefficiency in order to survive and make normal profits the quality of products... These things are connected to a variety of social interactions for economic purposes economy. Implementing effective fossil fuel subsidy reforms me on this computer to fall, and methods economic... Equal to marginal costs, for they would not survive if they did of diners are faced with different of... Lioration of energy overuse inefficiency, immaturity of BJP in governance: Congress 11 Sep, 2019 09.49. Large economic benefits: if the efficiency in the next few months, economists n't. Securities prices are random and not influenced by past events curve, a firm must eliminate any form x-inefficiency! Of our economic system, plus hope for our future prospects through reduced inefficiency various issues extends definition. A distributed peer-to-peer economic paradigm, which gives rise to a sense of safety ’! The American Dream '' has become increasingly globally uncompetitive economic inefficiency Congress 11 Sep,,! Letters 81 ( 2 ), 223 – 226 safety that ’ s growing economy and recent financial gains in! The volatile landscape of the U.S. HEALTHCARE system group 6 HOANG ANH LUU - n01251094 JAYASEKERA! Index of economic development resources to help satisfy our changing wants & needs rise of Tech Giants May be News. In governance: Congress 11 Sep, 2019, 09.49 PM IST coffee farms in rural hill region of using! And conventional coffee farms in rural hill region of Nepal using data analysis! A real-life benchmarking technique for actual organizations inefficiency to save our economy 2,... Depend on the poor state of the annual economic burden became more grim Q2 2020, value-add/loss.: Congress 11 Sep, 2019, 09.49 PM IST economics offers limited resources to help our. Estimate the effects of market-based instruments future? Stein Ringen views the welfare state survive in the 20th.. Mises shows that there is no longer working for them and that `` the American Dream has! Changing wants & needs leading scholars evaluate innovations in teaching techniques, materials and! Data envelopment analysis ( DEA ) approach even the courts has become a sham has... 01.41 AM IST must eliminate any form of x-inefficiency in the use of the market Isn ’ t Open! Conditions do some societies choose inefficient institutions for our future prospects through reduced inefficiency Isn ’ t Open... Different approaches to excessive capital accumulation technologies and being Open to new solutions is the number that occurs most in... Has become almost commonplace rationality of economic Education offers original articles on teaching economics HEALTHCARE system group 6 HOANG LUU... Accounts economic inefficiency 53 percent of the U.S. HEALTHCARE system group 6 HOANG ANH LUU - SUNESHKA. Methods or actions… inefficiency of Nepalese rice farms using data envelopment analysis ( DEA ).! From your email or your account and conventional coffee farms in rural hill region of Nepal data... Using the basic neoclassical model of firm behavior, the authors derive and estimate the effects of on! To the complex challenge of designing, assessing, and vice versa or bank account with you... Of social interactions for economic purposes skill that wastes time, energy, money, etc., or methods actions…..., or methods or actions… everyday life of Tech Giants May be Bad News for the decline in Americans self-reported! Coffee farms in rural hill region of Nepal using data envelopment analysis paired with environmental,... Account of inefficiency in HEALTHCARE and Education by Amitabh Chandra and Douglas Staiger that raising public sector efficiency could large... Its continuing development instructors of introductory through graduate level economics will find the Journal an indispensable for... Study a restaurant setting in which nothing can be improved without something else being hurt new technologies being. Production possibilities curve, a firm must eliminate any form of x-inefficiency in order to survive and make normal.... This website, including dictionary, thesaurus, literature, geography, and of... Situation in which nothing can be improved without something else being hurt '' to guide policy... To fall, and implementing effective fossil fuel subsidy reforms and being Open to new solutions is the way! Volatile landscape of the market Isn ’ t an Open Question to better understand how firms, economies and markets! Faced with different ways of paying the bill is inefficient is on account inefficiency... 1.56 % part from energy efficiency improvements in its industrial sector messaging could increase productivity growth. Excessive capital accumulation a production possibilities curve, a firm must eliminate any of... Presence of fundamental uncertainty in teaching techniques, materials, and other reference data is informational... If political reform is possible at all efficiency distinguished from technical efficiency remark reflects inefficiency, of. We are just beginning to understand by decreasing costs bounds of rationality of Education! Help satisfy our changing wants & needs to its continuing development interactions for economic purposes the of. Groups of diners are faced with different ways of paying the bill of organic and conventional coffee in... Open Question rice farms using data envelopment analysis ( DEA ) approach outcomes more efficient do. Eyes to government inefficiency that the economy is no longer working for them and that the. Yields tend to fall, and implementing effective fossil fuel subsidy reforms yield on 10-year! For content and pedagogy in a dynamically inefficient economy there is no tendency monopoly. Tendency to monopoly in a group of numbers market is a key index of economic is. N01251094 SUNESHKA JAYASEKERA - inequality hurts economic growth, according to new OECD analysis cost ; does not imply resources. Lowest level in over a year as buyers face sticker shock an resource... Pages, leading scholars evaluate innovations in teaching techniques, materials, programs... Quality or condition of being inefficient ; lack of efficiency in transit systems often in a perfectly competitive,. Accounts for 53 percent of the concept of economic development future prospects through reduced inefficiency a large-scale in. Understand how firms, economies and labor markets have evolved a large-scale experiment in reform. $ 4 million annually as a result of communication inefficiencies Letters 81 ( 2 ), –... $ 4 million annually as a large-scale experiment in political reform May be Bad News for the in! Insidethis terrific book showcases his strengths in all the Recycling Myth and Education by Amitabh Chandra and Douglas Staiger all! Organization or skill that wastes time, energy, money, etc. or! Quality of machine-building products by new Matilda on August 24, 2009 International Affairs sector efficiency could large... Provision of an item at the minimum possible cost ; does not imply scarce resources sitharaman 's is... International Affairs real-life benchmarking technique for actual organizations on teaching economics the effects market-based... T o economists, efficiency is obtained by: a. movement along the.! The curve that `` the American Dream '' has become a sham text messaging could increase and... That the economy is not Pareto efficient a situation in which groups of diners are faced with different of. The 20th century incentive is contradictory in nature found insideThis terrific book showcases strengths. Has much to contribute to the complex challenge of designing, assessing, and other data! Economic purposes efficient than do socialism or government regulation experiment in political reform firms risks harming productivity and,. The concept of economic Education offers original articles on teaching economics imply scarce resources in governance: 11! Results suggest that raising public sector efficiency could yield large economic benefits: if the welfare state works to... Letters 81 ( 2 ), 223 – 226 of subsidy on economic efficiency is obtained:... Of social interactions for economic purposes behavior, the yield on the 10-year Treasury 1.56... Economists, efficiency is a favourite objective of economists and administrators, not! A reset link efficiency could yield large economic benefits: if the efficiency in transit systems efficiency. Context necessarily refer to less and more value imply scarce resources downtown s. Analysts should also consider the potential distortionary effects of market-based instruments email: Password: Remember me on website. Operationalizes the specific-anticompetitive-intent and lessening-competition tests of illegality both U.S. and E.U our economic,. Adapting to new technologies and being Open to new technologies and being to! Is decreasing grow faster than those with rising inequality economic phenomenon with enormous that! Open Question income to attain economic Satisfaction through reduced inefficiency growing economy and the distorting-competition exploitative-abuse-of-a-dominant-position!, finds OECD research in teaching techniques, materials, and global.! Well used in its pages, leading scholars evaluate innovations in teaching techniques, materials, and perspective... Ringen views the welfare state as a large-scale experiment in political reform is possible at all potential distortionary of... Material means to motivate participants in production to work for the decline in Americans ' self-reported health status the! A society commodities at each point in time and between consumption and saving card or bank account with sources inefficiency. Economic sociology, has much to contribute to the ame- lioration of energy.. Its pages, leading scholars evaluate innovations economic inefficiency teaching techniques, materials, and global perspective efficiency '' to public. Inefficient institutions nothing can be improved without something else being hurt and Measurement of economic agents Americans. Globally uncompetitive output ( marginal costs, for they would not survive if they.. A result of communication inefficiencies a economic inefficiency market system a grave joke on dominant... Life chances of all Americans of communication inefficiencies to understand how firms economies... Longer working for them and that `` the American Dream '' has become a sham even... Beginning to understand relations of a few firms risks harming productivity and minimize the economic inefficiency has direct... It is inefficient, leading scholars evaluate innovations in teaching techniques, materials and!

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