Question

An economist defines efficiency as: a. ​ the maximization of inputs using available resources. b. ​ the maximization of revenue from available resources. c. ​ the creation of a surplus using available resources. d. ​ the maximization of output from available resources.

Answer 1

Answer:

d. ​ the maximization of output from available resources.

Explanation:

Efficiency is a situation where every resource is used in an optimal way to give the best possible result and eliminate waste. Efficient production is one with the lowest costs.  Economic efficiency is, therefore, the maximization of scarce resources to achieve the most economic benefit or output to consumers.

Efficiency is a relationship between inputs and output. It involves around how to use less inputs to get more value in the output. Economic efficiency focuses on the value obtained rather than quantities. It will include efficient production, efficient distribution, and efficient consumption of goods and services.