Final answer:
Environmental inefficiency in the US can be seen in the low recycling rate of plastics and leads to unmet demands for sustainability. Economic inefficiency includes both productive and allocative inefficiency, causing wastage of resources and failing to meet the population's needs. This can negatively affect society's standard of living and economic output.
Step-by-step explanation:
The inefficiency of the format in the United States can be discussed from an environmental perspective, particularly focusing on the recycling of plastic. Only 9% of plastic ever produced has been recycled, indicating a significant shortfall in environmental efficiency. This not only leads to waste but also fails to address the growing demand for sustainable practices.
Moreover, inefficiency within an economy can lead to both productive inefficiency and allocative inefficiency. Productive inefficiency occurs when the economy does not maximize the output of goods and services with the resources available, resulting in wastage. Allocative inefficiency is similarly wasteful because it happens when resources are not distributed in a way that aligns with the preferences and needs of the people. This results in some goods being overproduced while others are underproduced, and thus, does not achieve the optimal mix of goods and services that people desire.
Lastly, an inefficient system can have wider societal impacts, diminishing agricultural capacity and decreasing the overall number and standard of living of citizens. Economists agree that inefficient choices are undesirable as they prevent a nation from reaching its potential economic output without sacrificing environmental protection.