Define or Explain the Concepts.
Economic Efficiency.
Implies the allocation of resources in such a manner that it results in maximization of satisfaction of the people. Economic efficiency is categorized as (a) efficiency in production (b) efficiency in consumption (c) efficiency in direction of production.
(a) Efficiency in production means producing maximum goods with the help of the given resources, which helps in getting maximum output at a minimum cost.
(b) Efficiency in direction of production means producing those goods which are most desired by the people.
(c) Efficiency in consumption means distribution of given amount of goods and services among people for consumption which results in maximum satisfaction of the society.