Uneconomic Meaning: Definition, Examples, and Translations
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uneconomic
[ˌjuː.nɪˈkɒn.ə.mɪk ]
Definition
cost efficiency
Uneconomic refers to a situation, project, or action that is not financially viable or profitable. It implies that the costs involved outweigh the benefits or returns, leading to a loss rather than a gain. In a broader sense, it can also relate to decisions that do not make economic sense in terms of resource allocation.
Synonyms
inefficient, nonviable, unprofitable.
Examples of usage
- The uneconomic plan was abandoned due to high costs.
- Investing in that business proved to be uneconomic.
- The uneconomic project led to financial losses.
- Their decision to proceed was deemed uneconomic.
Translations
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Interesting Facts
Economics
- Projects deemed uneconomic often represent inefficient resource allocation, where inputs exceed outputs.
- Environmental sustainability initiatives can sometimes be labeled uneconomic if they do not provide immediate financial returns, despite their long-term benefits.
Business
- Businesses may face situations where certain operations become uneconomic due to rising costs or competition.
- In competitive markets, companies regularly assess operations to eliminate uneconomic practices to maximize profits.
Environmental Studies
- Uneconomic practices are often scrutinized in environmental contexts, as they can lead to waste and negative ecological impacts.
- The term is critical in debates about sustainable development, where some argue short-term profits can lead to long-term environmental debt.
Policy and Governance
- Government subsidies might inadvertently support uneconomic industries, raising concerns about taxpayers' money.
- Economic policies often aim to shift focus away from uneconomic sectors to foster growth in sustainable areas.
Origin of 'uneconomic'
Main points about word origin
- The term 'uneconomic' combines the prefix 'un-' meaning 'not' with 'economic,' which comes from the Greek word 'oikonomia,' meaning 'management of a household.'
- The prefix 'un-' is often added to words to create the opposite meaning, turning 'economic' into its contrary, 'uneconomic.'
The term 'uneconomic' is derived from the root word 'economic', which traces back to the Greek word 'oikonomia', meaning 'household management'. The prefix 'un-' denotes the negation, thus forming 'uneconomic'. The word began to appear in English usage around the mid-20th century, reflecting a growing awareness of financial viability in both personal finance and corporate strategies. As economic theories evolved, the distinction between economic and uneconomic decisions became crucial in evaluating projects, investments, and policies. Understanding whether something is uneconomic is vital for businesses and governments to make informed decisions that align resources effectively and promote sustainable growth.