In the UK, supermarkets like Tesco demonstrate static efficiency by using advanced logistics systems to minimise costs and keep prices competitive. This reflects productive efficiency, as the firm uses resources in the most cost-effective way.

Allocative efficiency can be seen in the NHS, where limited healthcare resources are (ideally) allocated to treatments that provide the greatest benefit to patients. For instance, funding life-saving drugs or surgeries over non-essential treatments improves welfare with available resources.

Static efficiency is important for short-term performance, ensuring that current resources are used wisely. However, it does not account for future innovation or improvements—that’s the role of dynamic efficiency.